Template-Type: ReDIF-Article 1.0 Author-Name: Andrea Gebauer Author-X-Name-First: Andrea Author-X-Name-Last: Gebauer Author-Name: Chang Woon Nam Author-X-Name-First: Chang Woon Author-X-Name-Last: Nam Author-Name: Rüdiger Parsche Author-X-Name-First: Rüdiger Author-X-Name-Last: Parsche Title: Can Reform Models of Value Added Taxation Stop the VAT Evasion and Revenue Shortfalls in the EU? Abstract: VAT evasion caused by the growth of carousel fraud has recently led to significant VAT revenue losses in the EU. Carousel fraud works such that intra‐EU firms repeatedly carry out cross‐border supply and purchase of goods and services, leading to the fraudulent retention of revenue. This study discusses three reform models of the VAT system in Germany, whose implementation would open up further possibilities for tax evasion and lead to a considerable increase in administrative costs. Journal: Journal of Economic Policy Reform Pages: 1-13 Issue: 1 Volume: 10 Year: 2007 X-DOI: 10.1080/17487870701201537 File-URL: http://hdl.handle.net/10.1080/17487870701201537 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jecprf:v:10:y:2007:i:1:p:1-13 Template-Type: ReDIF-Article 1.0 Author-Name: Ismail Genc Author-X-Name-First: Ismail Author-X-Name-Last: Genc Author-Name: Minsoo Lee Author-X-Name-First: Minsoo Author-X-Name-Last: Lee Author-Name: Candelaria Rodríguez Author-X-Name-First: Candelaria Author-X-Name-Last: Rodríguez Author-Name: Zachary Lutz Author-X-Name-First: Zachary Author-X-Name-Last: Lutz Title: Time Series Analysis of Inflation Targeting in Selected Countries Abstract: We analyze a set of countries which adopted inflation targeting (IT) as a policy tool. We model the pre‐IT period with ARMA and GARCH methods, and conduct the one‐step ahead forecasting for the remainder of the times series data. The actual and forecasted inflation levels are compared for each country. We find that even though the actual inflation levels are lower than the forecasted ones, there is no statistical evidence to suggest that the adoption of IT causes a structural break in the inflation levels of the countries which adopt IT. Journal: Journal of Economic Policy Reform Pages: 15-27 Issue: 1 Volume: 10 Year: 2007 X-DOI: 10.1080/17487870701201578 File-URL: http://hdl.handle.net/10.1080/17487870701201578 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jecprf:v:10:y:2007:i:1:p:15-27 Template-Type: ReDIF-Article 1.0 Author-Name: Bruno Merlevede Author-X-Name-First: Bruno Author-X-Name-Last: Merlevede Author-Name: Koen Schoors Author-X-Name-First: Koen Author-X-Name-Last: Schoors Title: On the Speed of Economic Reform – A Tale of the Tortoise and the Hare: Evidence from Transition Countries Abstract: We analyse how the choice of reform speed, foreign direct investment (FDI) and economic growth affect one another. New reforms affect economic growth negatively, whereas the level of past reform leads to higher growth and attracts FDI. We simulate the impact of big bang and gradualist strategies on economic growth. This is only meaningful in the presence of reform reversals, which requires aggregate uncertainty about the appropriate reform. We find that even relatively small ex ante reversal probabilities suffice to tilt the balance in favour of gradualism. The case for gradualism gains strength if policymakers are short‐sighted, but weakens if voters are myopic. Journal: Journal of Economic Policy Reform Pages: 29-50 Issue: 1 Volume: 10 Year: 2007 X-DOI: 10.1080/17487870701213573 File-URL: http://hdl.handle.net/10.1080/17487870701213573 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jecprf:v:10:y:2007:i:1:p:29-50 Template-Type: ReDIF-Article 1.0 Author-Name: André Fourçans Author-X-Name-First: André Author-X-Name-Last: Fourçans Author-Name: Thierry Warin Author-X-Name-First: Thierry Author-X-Name-Last: Warin Title: Stability and Growth Pact II: Incentives and Moral Hazard Abstract: Adopted in 1997 and implemented in 1999 with the euro, the Stability and Growth Pact (SGP) addresses concerns of budgetary discipline in the Economic and Monetary Union (EMU). After many breaches and the failure of the implementation of fines, Europe amended the SGP on 20 March 2005. In the new institutional design, the preventive element is now tighter, but the dissuasive element is laxer. Using a game theoretical approach emphasizing the notion of moral hazard, we find that the new design does not prevent countries from engaging in moral hazard behaviors and countries will thus be less inclined to abide by the SGP. Journal: Journal of Economic Policy Reform Pages: 51-62 Issue: 1 Volume: 10 Year: 2007 X-DOI: 10.1080/17487870701213599 File-URL: http://hdl.handle.net/10.1080/17487870701213599 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jecprf:v:10:y:2007:i:1:p:51-62 Template-Type: ReDIF-Article 1.0 Author-Name: Stephen Golub Author-X-Name-First: Stephen Author-X-Name-Last: Golub Author-Name: Ronald Jones Author-X-Name-First: Ronald Author-X-Name-Last: Jones Author-Name: Henryk Kierzkowski Author-X-Name-First: Henryk Author-X-Name-Last: Kierzkowski Title: Globalization and Country‐Specific Service Links Abstract: The Jones–Kierzkowski model of global fragmentation of production draws attention to the efficiency of ‘service links’ connecting ‘production blocks’ in different countries. Country‐specific service links include transport and telecommunications infrastructure and the overall business climate. Mobile factors of production, most prominently foreign direct investment (FDI), can shop around for countries with the most functional and inexpensive service links along with low labor costs. Those countries with favorable business climates and well‐functioning service links are able to attract FDI and other mobile inputs. We provide cross‐sectional evidence that successful exporters of manufactures, notably in East Asia, have relatively favorable service links. Journal: Journal of Economic Policy Reform Pages: 63-88 Issue: 2 Volume: 10 Year: 2007 X-DOI: 10.1080/17487870701272827 File-URL: http://hdl.handle.net/10.1080/17487870701272827 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jecprf:v:10:y:2007:i:2:p:63-88 Template-Type: ReDIF-Article 1.0 Author-Name: Aleksander Rutkowski Author-X-Name-First: Aleksander Author-X-Name-Last: Rutkowski Title: Determinants of Withdrawals of Anti‐Dumping Complaints in the EU Abstract: The study proposes a model explaining what determines the emergence (or re‐emergence) of collusion between complainants and defendants during anti‐dumping (AD) investigations. Based on theoretical and empirical evidence, we assume that collusion results in withdrawals of complaints and is thus observable. The probability of collusion can be explained by the variables from four areas: domestic political economy, international strategic trade policy, international industry‐level bargaining, and industry and product characteristics. The model is verified with probit regressions for the EU AD cases, having good explanatory power. Journal: Journal of Economic Policy Reform Pages: 89-109 Issue: 2 Volume: 10 Year: 2007 X-DOI: 10.1080/17487870701346449 File-URL: http://hdl.handle.net/10.1080/17487870701346449 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jecprf:v:10:y:2007:i:2:p:89-109 Template-Type: ReDIF-Article 1.0 Author-Name: Neven Valev Author-X-Name-First: Neven Author-X-Name-Last: Valev Author-Name: John Carlson Author-X-Name-First: John Author-X-Name-Last: Carlson Title: Beliefs about Exchange‐Rate Stability: Survey Evidence from the Currency Board in Bulgaria Abstract: Currency pegs seldom achieve full credibility even after delivering low inflation and a stable exchange rate for many years. We use unique survey data from Bulgaria’s currency board to investigate the origins of incomplete credibility. We show that the limitations imposed by the currency board on output stabilization policies are a major source of concern. Many people view the financial stabilization policies as a reason for high unemployment and therefore as unsustainable. Another important factor for low credibility is the concern over potential international shocks. Conversely, past instability does not seem to translate strongly into expectations of future instability. Journal: Journal of Economic Policy Reform Pages: 111-121 Issue: 2 Volume: 10 Year: 2007 X-DOI: 10.1080/17487870701346472 File-URL: http://hdl.handle.net/10.1080/17487870701346472 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jecprf:v:10:y:2007:i:2:p:111-121 Template-Type: ReDIF-Article 1.0 Author-Name: Valerie Koechlin Author-X-Name-First: Valerie Author-X-Name-Last: Koechlin Author-Name: Gianmarco Leon Author-X-Name-First: Gianmarco Author-X-Name-Last: Leon Title: International Remittances and Income Inequality: An Empirical Investigation Abstract: Using several cross‐sectional and panel data methodologies, this paper provides evidence of the existence of an inverted U‐shaped relationship between international remittances and income inequality in a cross section of 78 countries. Our analysis supports previous theoretical work that describes how, at the first stages of migration history, there is an inequality‐increasing effect of remittances on income inequality. Then, as the opportunity cost of migrating decreases due to this effect, remittances tend to lower inequality. We also show how education and the development of the financial sector can help countries reach faster the inequality‐decreasing section of the curve. Journal: Journal of Economic Policy Reform Pages: 123-141 Issue: 2 Volume: 10 Year: 2007 X-DOI: 10.1080/17487870701346514 File-URL: http://hdl.handle.net/10.1080/17487870701346514 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jecprf:v:10:y:2007:i:2:p:123-141 Template-Type: ReDIF-Article 1.0 Author-Name: Mariarosaria Agostino Author-X-Name-First: Mariarosaria Author-X-Name-Last: Agostino Title: World Bank Trade Adjustment Loans and Export Policy Distortions Abstract: This work investigates whether World Bank loans fostering trade liberalization are associated with less distorted export policies, by employing some gravity model‐based measures of anti‐export bias, and a Herfindhal index of export revenues concentration. When accounting for non‐random selection in a sample of 88 developing countries over the period 1980‐2000, the receipt of trade adjustment loans seems to have reduced the policy distortion under scrutiny. Such a beneficial influence, however, vanishes when a longer time horizon is considered, casting doubts on the country ownership of waves of liberalizations supported by the Bank. Journal: Journal of Economic Policy Reform Pages: 143-162 Issue: 2 Volume: 10 Year: 2007 X-DOI: 10.1080/17487870701358873 File-URL: http://hdl.handle.net/10.1080/17487870701358873 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jecprf:v:10:y:2007:i:2:p:143-162 Template-Type: ReDIF-Article 1.0 Author-Name: Md. Shahnawaz Karim Author-X-Name-First: Md. Shahnawaz Author-X-Name-Last: Karim Author-Name: Minsoo Lee Author-X-Name-First: Minsoo Author-X-Name-Last: Lee Author-Name: Christopher Gan Author-X-Name-First: Christopher Author-X-Name-Last: Gan Title: Exchange Rate Dynamics of New Zealand Abstract: This paper examines the exchange rate effects of monetary policy shocks in New Zealand in the framework of the international monetary transmission mechanism. The model variables are suggested by a hybrid New Open Economy Macroeconomic (NOEM) model. Our empirical analysis indicates plausible dynamic behaviour of nominal and real effective exchange rates in New Zealand due to unexpected monetary policy innovations, without any significant anomalies. In all cases, the impact effect of domestic monetary contraction is found to be an appreciation of the nominal and real effective exchange rates. Journal: Journal of Economic Policy Reform Pages: 241-260 Issue: 3 Volume: 10 Year: 2007 X-DOI: 10.1080/17487870701434443 File-URL: http://hdl.handle.net/10.1080/17487870701434443 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jecprf:v:10:y:2007:i:3:p:241-260 Template-Type: ReDIF-Article 1.0 Author-Name: Manmohan Lal Agarwal Author-X-Name-First: Manmohan Lal Author-X-Name-Last: Agarwal Author-Name: Bharat Hazari Author-X-Name-First: Bharat Author-X-Name-Last: Hazari Author-Name: Cheuk‐Yin Ho Author-X-Name-First: Cheuk‐Yin Author-X-Name-Last: Ho Title: Real Minimum Wage and Growth Theory: Simulations and Some Policy Results Abstract: A Solow type two‐sector growth model is used to examine several issues related to growth and unemployment in a minimum wage economy. By simulating the model, we demonstrate that given the same percentage increase in wage rate, an economy with a higher capital–labor ratio is more likely to decay. More importantly, a tariff policy reduces the unemployment periods by 92% provided that the current capital–labor ratio is one‐sixth of that of the steady state capital–labor ratio. We assume that the first best policy of uniform wage subsidy is not politically feasible. Journal: Journal of Economic Policy Reform Pages: 163-176 Issue: 3 Volume: 10 Year: 2007 X-DOI: 10.1080/17487870701440598 File-URL: http://hdl.handle.net/10.1080/17487870701440598 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jecprf:v:10:y:2007:i:3:p:163-176 Template-Type: ReDIF-Article 1.0 Author-Name: Abel Ezeoha Author-X-Name-First: Abel Author-X-Name-Last: Ezeoha Title: Industrial Development Banking in Nigeria: A Forty Year Failed Experiment Abstract: The first industrial development bank in Nigeria was established in 1964 as part of the First National Development Plan. Its original mandate was to provide medium‐ and long‐term finance to privately owned enterprises in Nigeria. Forty years after its establishment (1964–2004) funding still remains the major obstacle to industrial development in Nigeria. This paper argues that the major problem for the bank was the government’s inability to separate the affairs of the bank from politics. Journal: Journal of Economic Policy Reform Pages: 193-208 Issue: 3 Volume: 10 Year: 2007 X-DOI: 10.1080/17487870701444731 File-URL: http://hdl.handle.net/10.1080/17487870701444731 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jecprf:v:10:y:2007:i:3:p:193-208 Template-Type: ReDIF-Article 1.0 Author-Name: Bruno Meessen Author-X-Name-First: Bruno Author-X-Name-Last: Meessen Author-Name: Gerald Bloom Author-X-Name-First: Gerald Author-X-Name-Last: Bloom Title: Economic Transition, Institutional Changes and the Health System: Some Lessons from Rural China Abstract: The success of China in its transition has received a great deal of attention from economists. At the same time, public health experts have accumulated evidence on setbacks within the Chinese health sector, particularly in rural areas. This paper puts these two bodies of knowledge together. It explores the links between the two phenomena. The review shows that economic transition, the ‘Chinese way’, creates specific challenges for the rural health sector. It also invites transition experts to pay more attention to health. There is a need for more studies on how health system development is influenced by economic and public finance reforms. Journal: Journal of Economic Policy Reform Pages: 209-231 Issue: 3 Volume: 10 Year: 2007 X-DOI: 10.1080/17487870701446033 File-URL: http://hdl.handle.net/10.1080/17487870701446033 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jecprf:v:10:y:2007:i:3:p:209-231 Template-Type: ReDIF-Article 1.0 Author-Name: Michael Mitsopoulos Author-X-Name-First: Michael Author-X-Name-Last: Mitsopoulos Author-Name: Theodore Pelagidis Author-X-Name-First: Theodore Author-X-Name-Last: Pelagidis Title: Rent‐Seeking and Acceptance of Reforms in Higher Education Abstract: Resistance to reduced government intervention in the management of higher education institutions is commonly observed in Continental Europe. We offer a theoretical argument to describe how rent seeking through ex‐ante fierce resistance to reform in tertiary education is compatible with a widespread ex‐post adoption of reforms which liberate universities from suffocating state control. Journal: Journal of Economic Policy Reform Pages: 177-192 Issue: 3 Volume: 10 Year: 2007 X-DOI: 10.1080/17487870701447502 File-URL: http://hdl.handle.net/10.1080/17487870701447502 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jecprf:v:10:y:2007:i:3:p:177-192 Template-Type: ReDIF-Article 1.0 Author-Name: Wang Yujing Author-X-Name-First: Wang Author-X-Name-Last: Yujing Author-Name: Liu Huihuang Author-X-Name-First: Liu Author-X-Name-Last: Huihuang Title: Green Barriers from the Standpoint of Sustainable Development Abstract: Green barriers are one kind of non‐tariff barrier (NTB). This paper points out that green barriers evolved from sustainable development theory and environmental protection, but are compatible with true comparative advantage. The best way to surmount green barriers for Chinese enterprises is to implement circular production processes and clean production techniques. Journal: Journal of Economic Policy Reform Pages: 233-240 Issue: 3 Volume: 10 Year: 2007 X-DOI: 10.1080/17487870701456545 File-URL: http://hdl.handle.net/10.1080/17487870701456545 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jecprf:v:10:y:2007:i:3:p:233-240 Template-Type: ReDIF-Article 1.0 Author-Name: Juan Luo Author-X-Name-First: Juan Author-X-Name-Last: Luo Author-Name: Wenjin Tang Author-X-Name-First: Wenjin Author-X-Name-Last: Tang Title: Capital Openness and Financial Crises: A Financial Contagion Model with Multiple Equilibria Abstract: This paper explores the effects of capital openness on financial crises and contagion. In the model, we analyze four channels of contagion involved in the process of financial crisis: monsoon effects, spillovers, self‐fulfilling expectations and new information. We empirically test the data from China, an economy with capital account controls, and find that the fundamentals of China (PRC) are now in a vulnerable area which yields multiple equilibria. Consequently, the Chinese economy is easily affected via the channels discussed in this paper. Finally we suggest that the capital account of China should be opened gradually. Journal: Journal of Economic Policy Reform Pages: 283-296 Issue: 4 Volume: 10 Year: 2007 X-DOI: 10.1080/17487870701551972 File-URL: http://hdl.handle.net/10.1080/17487870701551972 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jecprf:v:10:y:2007:i:4:p:283-296 Template-Type: ReDIF-Article 1.0 Author-Name: Yaozhong Wang Author-X-Name-First: Yaozhong Author-X-Name-Last: Wang Author-Name: Zhizhong Liu Author-X-Name-First: Zhizhong Author-X-Name-Last: Liu Author-Name: Yang Zhang Author-X-Name-First: Yang Author-X-Name-Last: Zhang Title: Cross‐Border Mergers and Acquisitions: Innovative Capacity and National Economic Security Abstract: Based on capital accumulation and the capacity to innovate, we use an Edgeworth box and find that in a host country that lacks capital, if multinational corporations (MNCs) remit more profits back to their parent companies and invest less in the host country, the latter’s R&D ability to innovate may decline. As a result, the host country’s economic security could be threatened. An empirical test using Chinese data suggests that introducing foreign capital actively and promoting the innovation of small and medium‐sized enterprises could help to maintain national economic security in cross‐border M&A. Journal: Journal of Economic Policy Reform Pages: 263-281 Issue: 4 Volume: 10 Year: 2007 X-DOI: 10.1080/17487870701551998 File-URL: http://hdl.handle.net/10.1080/17487870701551998 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jecprf:v:10:y:2007:i:4:p:263-281 Template-Type: ReDIF-Article 1.0 Author-Name: Sheng‐gang Yang Author-X-Name-First: Sheng‐gang Author-X-Name-Last: Yang Author-Name: Tian‐yi Wang Author-X-Name-First: Tian‐yi Author-X-Name-Last: Wang Author-Name: Shun‐cai Jiang Author-X-Name-First: Shun‐cai Author-X-Name-Last: Jiang Title: What Explains the High Returns to the IPOs of China's A‐Shares? Abstract: This paper investigates the initial returns of Chinese A‐share initial public offerings (IPOs) under the split‐share structure before 2005. The split‐share structure refers to the coexistence of shareholders of tradable shares and shareholders of non‐tradable shares. The average initial return is much higher than those of other countries, even though this has been declining. We argue that the split‐share structure causes the initial returns of Chinese IPOs to be very high level in the beginning, and then to decrease slowly because of the institutional transition and the path‐dependent characteristics. With the reform of non‐tradable share offerings, the average initial return of Chinese IPOs is likely to fall. Journal: Journal of Economic Policy Reform Pages: 297-308 Issue: 4 Volume: 10 Year: 2007 X-DOI: 10.1080/17487870701552012 File-URL: http://hdl.handle.net/10.1080/17487870701552012 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jecprf:v:10:y:2007:i:4:p:297-308 Template-Type: ReDIF-Article 1.0 Author-Name: Michael Connolly Author-X-Name-First: Michael Author-X-Name-Last: Connolly Title: Measuring the Effect of Corruption on Sovereign Bond Ratings Abstract: Instrumenting for sovereign corruption, we find that Transparency International’s Corruption Perceptions Index which ‘ranges from 10 (highly clean) to 0 (highly corrupt)’, is a significant predictor of the Standard and Poor’s sovereign bond ratings ranging from 1 (Sovereign Default) to 22 (AAA) in panel data from 52 countries from 1993 to 2002. Corruption downgrades the creditworthiness of sovereign bonds by diverting loan proceeds from productive projects to less productive ones, if not to offshore accounts. In particular, a one point worsening of the corruption perception index leads to an estimated one‐notch reduction out of 22 in the sovereign bond rating. Journal: Journal of Economic Policy Reform Pages: 309-323 Issue: 4 Volume: 10 Year: 2007 X-DOI: 10.1080/17487870701552053 File-URL: http://hdl.handle.net/10.1080/17487870701552053 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jecprf:v:10:y:2007:i:4:p:309-323 Template-Type: ReDIF-Article 1.0 Author-Name: Xuehui He Author-X-Name-First: Xuehui Author-X-Name-Last: He Author-Name: Yiming Wang Author-X-Name-First: Yiming Author-X-Name-Last: Wang Title: Bank Loan Behavior and Credit Information Sharing: An Insight from Measurement Costs Abstract: We find that the measurement cost of creditworthiness is important when considering the behavior of banks. A set of credit infrastructures, i.e. a credit rating system, will help to increase the incentive of the banks to make unsecured credit loans, and thus help financial development. However, since the credit information sharing system is a kind of ‘public good’, it will not come into being endogenously in most cases without the driving force of the government. Journal: Journal of Economic Policy Reform Pages: 325-333 Issue: 4 Volume: 10 Year: 2007 X-DOI: 10.1080/17487870701554315 File-URL: http://hdl.handle.net/10.1080/17487870701554315 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jecprf:v:10:y:2007:i:4:p:325-333 Template-Type: ReDIF-Article 1.0 Author-Name: Hu Xiaojuan Author-X-Name-First: Hu Author-X-Name-Last: Xiaojuan Author-Name: Su Yan Author-X-Name-First: Su Author-X-Name-Last: Yan Title: The Impact of Tariff Policies on Imports of China’s Intermediate Goods Abstract: China has witnessed a substantial increase in imported intermediate goods in recent years. To a great extent, this can be attributed to China’s tariff policies. We explore the impact of tariff reductions on intermediate products, the implementation of a ladder‐shaped, cascading tariff structure, and China’s policy of encouraging processing trade. Our analysis suggests that China’s tariff policies affect her export ability, the scale of foreign direct investment (FDI) and the growth of Gross Domestic Product (GDP). Journal: Journal of Economic Policy Reform Pages: 335-341 Issue: 4 Volume: 10 Year: 2007 X-DOI: 10.1080/17487870701556385 File-URL: http://hdl.handle.net/10.1080/17487870701556385 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jecprf:v:10:y:2007:i:4:p:335-341 Template-Type: ReDIF-Article 1.0 Author-Name: Yanlin Yang Author-X-Name-First: Yanlin Author-X-Name-Last: Yang Author-Name: Yin‐E Chen Author-X-Name-First: Yin‐E Author-X-Name-Last: Chen Author-Name: Zhizhong Liu Author-X-Name-First: Zhizhong Author-X-Name-Last: Liu Title: Energy Constraints and China’s Economic Development Abstract: Energy is the basic support of China’s fast economic growth, industrialization and modernization, but China has suffered from an energy shortage. We examine the role of energy development in China, and then assess the effect that energy shortages have on economic development in the short‐term. We suggest some policies for energy saving and development in the long‐term. Journal: Journal of Economic Policy Reform Pages: 343-354 Issue: 4 Volume: 10 Year: 2007 X-DOI: 10.1080/17487870701563167 File-URL: http://hdl.handle.net/10.1080/17487870701563167 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jecprf:v:10:y:2007:i:4:p:343-354 Template-Type: ReDIF-Article 1.0 Author-Name: The Editors Title: Introduction Journal: Journal of Economic Policy Reform Pages: 261-261 Issue: 4 Volume: 10 Year: 2007 X-DOI: 10.1080/17487870701625644 File-URL: http://hdl.handle.net/10.1080/17487870701625644 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jecprf:v:10:y:2007:i:4:p:261-261 Template-Type: ReDIF-Article 1.0 Author-Name: Qiang Zhang Author-X-Name-First: Qiang Author-X-Name-Last: Zhang Author-Name: Gui‐Rong She Author-X-Name-First: Gui‐Rong Author-X-Name-Last: She Title: Is there any effect of market discipline on China’s bank supervision? Abstract: This study finds that implicit deposit insurance in the four original state banks, undermines market discipline and creates moral hazard. The differences of degree in market discipline in different banks depending on their ownership structure result from varying coverage by implicit deposit insurance. Chinese bank supervisory authorities should reform polices to enhance market discipline. Journal: Journal of Economic Policy Reform Pages: 29-35 Issue: 1 Volume: 11 Year: 2008 X-DOI: 10.1080/17487870701625610 File-URL: http://hdl.handle.net/10.1080/17487870701625610 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jecprf:v:11:y:2008:i:1:p:29-35 Template-Type: ReDIF-Article 1.0 Author-Name: Naved Ahmad Author-X-Name-First: Naved Author-X-Name-Last: Ahmad Title: Corrupt clubs and the convergence hypothesis Abstract: Empirical work in a cross‐section framework demonstrates little or no support for absolute convergence in per capita GDP. I argue in this paper that “divergence in corruption”, defined as the tendency of corrupt countries to become more corrupt faster than less corrupt nations, is a neglected factor that also determines the speed of convergence. Using Transparency International (TI) corruption perceptions index, I estimate C‐σ and C‐γ coefficients for corrupt and less corrupt economies to explore the C‐divergence in corruption rankings. The study concludes that corrupt countries are C‐converging, forming a “corrupt club”. Journal: Journal of Economic Policy Reform Pages: 21-28 Issue: 1 Volume: 11 Year: 2008 X-DOI: 10.1080/17487870802031395 File-URL: http://hdl.handle.net/10.1080/17487870802031395 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jecprf:v:11:y:2008:i:1:p:21-28 Template-Type: ReDIF-Article 1.0 Author-Name: Chetan Ghate Author-X-Name-First: Chetan Author-X-Name-Last: Ghate Title: Understanding divergence in India: a political economy approach Abstract: We construct a simple political economy model with imperfect capital markets to explain infrastructure investments across Indian states. The model predicts that: i) the fixed cost of accessing the modern sector, ii) the initial stock of infrastructure, iii) median voter wealth, and iv) corruption, can all potentially explain why different states have different levels of infrastructure investments. The theoretical model is motivated by recent empirical work on India that argues that the reason per‐capita income across Indian states has diverged is because of the distribution of infrastructure investments. Journal: Journal of Economic Policy Reform Pages: 1-9 Issue: 1 Volume: 11 Year: 2008 X-DOI: 10.1080/17487870802031411 File-URL: http://hdl.handle.net/10.1080/17487870802031411 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jecprf:v:11:y:2008:i:1:p:1-9 Template-Type: ReDIF-Article 1.0 Author-Name: Pauline Abetti Author-X-Name-First: Pauline Author-X-Name-Last: Abetti Title: Congressional voting on DR‐CAFTA: the ineffectiveness of environmental lobbying Abstract: This paper examines the determinants of Congressional voting on CAFTA, focusing on environmental lobbying. Empirical results indicate that the environment was in fact not a major point of contention during the CAFTA vote. Campaign contributions were, however, an important factor in determining the vote. Indeed, with no contributions from labor or business, the CAFTA would not have passed. Employment in the sensitive sectors of CAFTA, sugar and textiles, were also critical in affecting the vote. An unanticipated result in this analysis was the effect of income on the CAFTA vote – poorer districts favored the agreement. Journal: Journal of Economic Policy Reform Pages: 11-20 Issue: 1 Volume: 11 Year: 2008 X-DOI: 10.1080/17487870802031437 File-URL: http://hdl.handle.net/10.1080/17487870802031437 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jecprf:v:11:y:2008:i:1:p:11-20 Template-Type: ReDIF-Article 1.0 Author-Name: Graham Bird Author-X-Name-First: Graham Author-X-Name-Last: Bird Author-Name: Dane Rowlands Author-X-Name-First: Dane Author-X-Name-Last: Rowlands Title: Catalysing private capital flows and IMF programs: some remaining questions Abstract: In a 2005 article in this journal, Genberg poses the question of whether countries with IMF programs have “privileged access” to international capital markets. In attempting to answer this question, he cautions about reading too much into some of the recent literature. In this paper, we briefly examine the so‐called catalytic effect in a way that attempts to overcome some of his concerns. Our results suggest that it is unwise to place too much emphasis on any set of specific results that may not be generalized or robust across different methodologies and different types of capital flows. Journal: Journal of Economic Policy Reform Pages: 37-43 Issue: 1 Volume: 11 Year: 2008 X-DOI: 10.1080/17487870802031452 File-URL: http://hdl.handle.net/10.1080/17487870802031452 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jecprf:v:11:y:2008:i:1:p:37-43 Template-Type: ReDIF-Article 1.0 Author-Name: Germà Bel Author-X-Name-First: Germà Author-X-Name-Last: Bel Author-Name: Xavier Fageda Author-X-Name-First: Xavier Author-X-Name-Last: Fageda Title: Reforming the local public sector: economics and politics in privatization of water and solid waste Abstract: Several empirical studies have analyzed the factors that influence local privatization. We examine the influence of transaction costs and political factors on local governments’ choices through new variables. We consider two relevant services accounting for different amounts of transaction costs: water and solid waste delivery. Our results show that privatization is less common for water, which has higher transaction costs. Furthermore, we find that municipalities with a conservative ruling party privatize more often regardless of the ideological orientation of the constituency. Finally, we find that intermunicipal cooperation may be a suitable organizational form for some municipalities. Journal: Journal of Economic Policy Reform Pages: 45-65 Issue: 1 Volume: 11 Year: 2008 X-DOI: 10.1080/17487870802134884 File-URL: http://hdl.handle.net/10.1080/17487870802134884 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jecprf:v:11:y:2008:i:1:p:45-65 Template-Type: ReDIF-Article 1.0 Author-Name: Gouranga Gopal Das Author-X-Name-First: Gouranga Gopal Author-X-Name-Last: Das Title: Does trade and technology transmission facilitate convergence? The role of technology adoption in reducing the inequality of nations Abstract: Based on stylized evidence showing variation of the Gini coefficients of income inequality across skill cohorts with the rapid rise in trade in technology‐intensive goods, the transmission effects of technology diffusion and income inequality are explored in a global Computable General Equilibrium (CGE) framework. An exogenous technology shock transmitted via trade from the United States induces productivity growth in developing regions. This spillover in technology – aided by absorptive capability, better governance and institutions, technological symmetry and social acceptance – causes income to increase and income inequality to decline. The transmission of technology facilitates convergence of inequality between nations. Journal: Journal of Economic Policy Reform Pages: 67-92 Issue: 1 Volume: 11 Year: 2008 X-DOI: 10.1080/17487870802134942 File-URL: http://hdl.handle.net/10.1080/17487870802134942 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jecprf:v:11:y:2008:i:1:p:67-92 Template-Type: ReDIF-Article 1.0 Author-Name: Donald Richards Author-X-Name-First: Donald Author-X-Name-Last: Richards Title: Transition and reform in a predatory state: the case of Paraguay Abstract: This paper examines the problems of public and institutional reforms within the context of a so‐called predatory state. The predatory state is one that acts in the interest of an elite rather than pursue a coherent strategy for economic development. The argument is that, even after the process of political transition is begun, important reforms are blocked by a lingering institutional overhang that continues to serve the predatory elite. We examine the experience of Paraguay that disposed of its dictator in 1989 and began a democratic transition. The failure to implement needed reforms is shown to have blocked a revival of economic growth and development. Journal: Journal of Economic Policy Reform Pages: 101-114 Issue: 2 Volume: 11 Year: 2008 X-DOI: 10.1080/17487870802031403 File-URL: http://hdl.handle.net/10.1080/17487870802031403 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jecprf:v:11:y:2008:i:2:p:101-114 Template-Type: ReDIF-Article 1.0 Author-Name: Nisha Malhotra Author-X-Name-First: Nisha Author-X-Name-Last: Malhotra Author-Name: Shavin Malhotra Author-X-Name-First: Shavin Author-X-Name-Last: Malhotra Title: Liberalization and protection: antidumping duties in the Indian pharmaceutical industry Abstract: In this paper we investigate whether antidumping (AD) actions in the Indian pharmaceutical industry have restricted trade from countries that were named to be dumping, or whether trade was diverted to other countries not named in these petitions. We found no evidence of trade diversion. It is bad news for consumers, as a restrictive trade policy translates into higher prices for the importing good. In a country where only 30% of the population can afford access to modern drugs, the trade effect due to AD laws must be carefully evaluated. Journal: Journal of Economic Policy Reform Pages: 115-122 Issue: 2 Volume: 11 Year: 2008 X-DOI: 10.1080/17487870802213860 File-URL: http://hdl.handle.net/10.1080/17487870802213860 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jecprf:v:11:y:2008:i:2:p:115-122 Template-Type: ReDIF-Article 1.0 Author-Name: Emilie Rutledge Author-X-Name-First: Emilie Author-X-Name-Last: Rutledge Title: Is EMU a viable model for monetary integration in the Arabian Gulf? Abstract: The Gulf Cooperation Council (GCC) intends to form a monetary union using the EMU process as a blueprint, including a set of Maastricht‐style convergence criteria. Yet, as the 2010 deadline approaches, few of the necessary institutional preparations have been made. This paper argues that while GCC leaders considered the economic case (on the whole beneficial) they neglected to fully consider the political implications of monetary union. It concludes that devolving decision‐making powers to pan‐GCC institutions, the need for greater levels of budgetary transparency and fiscal discipline may presently be considered too costly for the region’s ruling elites. Journal: Journal of Economic Policy Reform Pages: 123-134 Issue: 2 Volume: 11 Year: 2008 X-DOI: 10.1080/17487870802213878 File-URL: http://hdl.handle.net/10.1080/17487870802213878 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jecprf:v:11:y:2008:i:2:p:123-134 Template-Type: ReDIF-Article 1.0 Author-Name: Francisco Veiga Author-X-Name-First: Francisco Author-X-Name-Last: Veiga Title: Why do stabilizations fail? Abstract: This paper is an empirical analysis of the likelihood of failure of inflation stabilization programs. Random effects logit models are estimated on a dataset of 39 programs implemented in 10 countries, in order to determine which economic and political variables affect the probability of failure of stabilizations. This study’s main contribution is to show that political factors are very important determinants of the success or failure of stabilization programs. There is empirical evidence that political instability, party fractionalization, autocracy, longer time in office and left‐wing ideological orientation of incumbents lead to higher probabilities of failure of stabilization attempts. Journal: Journal of Economic Policy Reform Pages: 135-149 Issue: 2 Volume: 11 Year: 2008 X-DOI: 10.1080/17487870802213886 File-URL: http://hdl.handle.net/10.1080/17487870802213886 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jecprf:v:11:y:2008:i:2:p:135-149 Template-Type: ReDIF-Article 1.0 Author-Name: Emanuel Barnea Author-X-Name-First: Emanuel Author-X-Name-Last: Barnea Author-Name: Nissan Liviatan Author-X-Name-First: Nissan Author-X-Name-Last: Liviatan Title: The chronic inflation process: a model and evidence from Brazil and Israel Abstract: This paper challenges the dominant model which was used to explain the chronic inflation process, as in Latin America in the seventies and eighties. Unlike the usual long term view we present a variant of the Barro and Gordon policy game model which is based on short term considerations in the inflationary period. In the latter period the model implies a random walk and after stabilization the model implies stationarity. Thestatistical tests, using data from Brazil and Israel, do not reject the implications of the model. Journal: Journal of Economic Policy Reform Pages: 151-162 Issue: 2 Volume: 11 Year: 2008 X-DOI: 10.1080/17487870802236192 File-URL: http://hdl.handle.net/10.1080/17487870802236192 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jecprf:v:11:y:2008:i:2:p:151-162 Template-Type: ReDIF-Article 1.0 Author-Name: Zhuo Tan Author-X-Name-First: Zhuo Author-X-Name-Last: Tan Author-Name: Shenggang Yang Author-X-Name-First: Shenggang Author-X-Name-Last: Yang Author-Name: Hong Zhu Author-X-Name-First: Hong Author-X-Name-Last: Zhu Title: China’s implicit demand for foreign reserves: neutralization and the rise in reserves Abstract: We estimate China’s demand for foreign reserves from 1994:1 to 2007:4. Using a monetary model for China’s reserve demand, we take into account the People’s Bank of China’s systematic neutralization policy to reduce inflation. While ultimately inconsistent, this policy has led to a growth in foreign exchange reserves that seems limitless: a neutralization coefficient of 0.57 leading to a “magnification effect” on the increase in reserves of 2.3. That is, a purchase of foreign reserves leads to a contraction of domestic credit of 57% of the foreign exchange purchase, which in turn magnifies the surplus under a stable exchange rate. Journal: Journal of Economic Policy Reform Pages: 93-99 Issue: 2 Volume: 11 Year: 2008 X-DOI: 10.1080/17487870802299208 File-URL: http://hdl.handle.net/10.1080/17487870802299208 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jecprf:v:11:y:2008:i:2:p:93-99 Template-Type: ReDIF-Article 1.0 Author-Name: Hrushikesh Mallick Author-X-Name-First: Hrushikesh Author-X-Name-Last: Mallick Title: Inflation and growth dynamics: the Indian experience Abstract: This study investigates the impact of inflation on economic growth in India during the period 1960 to 2005. Applying cointegration procedures, I find that inflation rates have a significant adverse impact on economic growth while investment has a favorable impact. This suggests a policy of targeting price stability is desirable to achieve a higher rate of economic growth in emerging markets. Journal: Journal of Economic Policy Reform Pages: 163-172 Issue: 3 Volume: 11 Year: 2008 X-DOI: 10.1080/17487870802327249 File-URL: http://hdl.handle.net/10.1080/17487870802327249 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jecprf:v:11:y:2008:i:3:p:163-172 Template-Type: ReDIF-Article 1.0 Author-Name: Friedrich Heinemann Author-X-Name-First: Friedrich Author-X-Name-Last: Heinemann Author-Name: Benjamin Tanz Author-X-Name-First: Benjamin Author-X-Name-Last: Tanz Title: The impact of trust on reforms Abstract: In a constantly changing economic environment, a country's ability to undertake institutional reforms is crucial to maintain economic growth and to promote the welfare of its citizens. A wide range of determinants for institutional reforms have been identified. However, the impact of trust on reforms has not been fully addressed. We provide theoretical arguments why trust should influence institutional changes and test the relationship empirically. We find a significant positive relation between trust and the success of reforms with regard to government size, the legal system, and deregulation of private businesses and the labor market. Other policy fields are ambiguous. Journal: Journal of Economic Policy Reform Pages: 173-185 Issue: 3 Volume: 11 Year: 2008 X-DOI: 10.1080/17487870802405375 File-URL: http://hdl.handle.net/10.1080/17487870802405375 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jecprf:v:11:y:2008:i:3:p:173-185 Template-Type: ReDIF-Article 1.0 Author-Name: Athanasios Vamvakidis Author-X-Name-First: Athanasios Author-X-Name-Last: Vamvakidis Title: External debt and economic reform: does a pain reliever delay the necessary treatment? Abstract: Recent literature argues that conflict in shifting adjustment costs between different socioeconomic groups delays necessary reforms and finds that such reforms often follow economic crises. This paper expands these models by including external borrowing by the private sector and shows that this may lead to a further delay in economic reform. Empirical evidence based on a large panel of developing and emerging economies supports this argument and shows that the result is slower economic growth. External financing sometimes acts like a “pain reliever”, postponing the much needed “treatment” of a “sick” economy by reform. Journal: Journal of Economic Policy Reform Pages: 187-199 Issue: 3 Volume: 11 Year: 2008 X-DOI: 10.1080/17487870802405409 File-URL: http://hdl.handle.net/10.1080/17487870802405409 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jecprf:v:11:y:2008:i:3:p:187-199 Template-Type: ReDIF-Article 1.0 Author-Name: Bharati Basu Author-X-Name-First: Bharati Author-X-Name-Last: Basu Author-Name: Bharat Hazari Author-X-Name-First: Bharat Author-X-Name-Last: Hazari Title: Regional inequality and immiserization Abstract: In this paper we use a four‐sector, two‐region model to investigate the impact of an increase in capital on regional income inequality. We also analyze its impact on wages, and rents on capital and land. These changes occur due to a movement in the internal terms of trade – a worsening of the relative price of rural non‐traded goods to urban non‐traded goods – as distinct from the international terms of trade. We demonstrate that under certain conditions, an increase in urban capital necessarily immiserizes the rural region and thereby increases inequality among regions. Journal: Journal of Economic Policy Reform Pages: 201-213 Issue: 3 Volume: 11 Year: 2008 X-DOI: 10.1080/17487870802417222 File-URL: http://hdl.handle.net/10.1080/17487870802417222 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jecprf:v:11:y:2008:i:3:p:201-213 Template-Type: ReDIF-Article 1.0 Author-Name: Wei Zou Author-X-Name-First: Wei Author-X-Name-Last: Zou Author-Name: Ziyin Zhuang Author-X-Name-First: Ziyin Author-X-Name-Last: Zhuang Author-Name: Hao Zhou Author-X-Name-First: Hao Author-X-Name-Last: Zhou Author-Name: Hairong Song Author-X-Name-First: Hairong Author-X-Name-Last: Song Title: Measuring divergence in provincial growth in China: 1981–2004 Abstract: Provincial income disparity in China has been increasing with rapid economic growth, yet the measurement of the causes of the divergence is relatively inadequate. Based on growth regression analysis and “counterfactual econometrics”, this paper constructs “counterfactual” relative per capita income with consideration of several factors such as initial income level, physical capital, employment, human capital, infrastructure, degree of openness and urbanization. We then measure different factors’ contribution to β‐convergence and the σ‐convergence across provinces. We find out that while contributing significantly to economic growth, different infrastructure, human capital and urbanization rates also result in provincial divergence. Journal: Journal of Economic Policy Reform Pages: 215-227 Issue: 3 Volume: 11 Year: 2008 X-DOI: 10.1080/17487870802417727 File-URL: http://hdl.handle.net/10.1080/17487870802417727 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jecprf:v:11:y:2008:i:3:p:215-227 Template-Type: ReDIF-Article 1.0 Author-Name: Alberto Chong Author-X-Name-First: Alberto Author-X-Name-Last: Chong Author-Name: Jose Galdo Author-X-Name-First: Jose Author-X-Name-Last: Galdo Author-Name: Jaime Saavedra Author-X-Name-First: Jaime Author-X-Name-Last: Saavedra Title: Informality and productivity in the labor market in Peru Abstract: This article analyzes the evolution of informal employment in Peru from 1986 to 2001. Contrary to what one would expect, the informality rates increased steadily during the 1990s despite the introduction of flexible contracting mechanisms, a healthy macroeconomic recovery, and tighter tax codes and regulation. We explore different factors that may explain this upward trend including the role of labor legislation and labor allocation between/within sectors of economic activity. Finally, we illustrate the negative correlation between productivity and informality by evaluating the impacts of the Youth Training PROJOVEN Program that offers vocational training to disadvantaged young individuals. We find significant training impacts on the probability of formal employment for both males and females. Journal: Journal of Economic Policy Reform Pages: 229-245 Issue: 4 Volume: 11 Year: 2008 X-DOI: 10.1080/17487870802543480 File-URL: http://hdl.handle.net/10.1080/17487870802543480 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jecprf:v:11:y:2008:i:4:p:229-245 Template-Type: ReDIF-Article 1.0 Author-Name: Kuo‐chun Yeh Author-X-Name-First: Kuo‐chun Author-X-Name-Last: Yeh Title: Prospects for a Chinese currency area: simulations of Robert Mundell's multi‐currency monetary union Abstract: Based on Robert Mundell's proposal for an Asian multi‐currency monetary union, this paper provides a framework to analyze whether a prospective Chinese currency union can be sustained after suffering from various shocks. An important assumption is that China and Taiwan can coordinate their economic policies without losing their independent national currencies. A dynamic game approach simulates possible outcomes if a China–Taiwan cooperative mechanism were to be implemented. The results show that the China–Taiwan coalition can be feasible under the shock of currency appreciation. Journal: Journal of Economic Policy Reform Pages: 247-260 Issue: 4 Volume: 11 Year: 2008 X-DOI: 10.1080/17487870802556532 File-URL: http://hdl.handle.net/10.1080/17487870802556532 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jecprf:v:11:y:2008:i:4:p:247-260 Template-Type: ReDIF-Article 1.0 Author-Name: Anurag Sharma Author-X-Name-First: Anurag Author-X-Name-Last: Sharma Title: Incomplete reform or opportunity: the role of the banking sector in the credit transmission mechanism in India Abstract: The recent financial crisis in developed economies is attributed to the credit crunch and features of a free market economy. One main concern is the spreading of this crisis to emerging economies. This paper tests the importance of the banking sector as a credit transmission channel in India. The empirical analysis discovers a structurally stable long‐run relationship (immune to exogenous shocks) between bank credit and interest rate spread. This suggests that the reform process has not yet reached an extent where capital markets are fully competitive and banks' role in credit formation remains significant, suggesting India's reduced exposure to the current financial crisis. Journal: Journal of Economic Policy Reform Pages: 273-288 Issue: 4 Volume: 11 Year: 2008 X-DOI: 10.1080/17487870802567315 File-URL: http://hdl.handle.net/10.1080/17487870802567315 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jecprf:v:11:y:2008:i:4:p:273-288 Template-Type: ReDIF-Article 1.0 Author-Name: Nurhan Davutyan Author-X-Name-First: Nurhan Author-X-Name-Last: Davutyan Title: Estimating the size of Turkey's informal sector: an expenditure‐based approach Abstract: Accurately measuring Turkey's informal sector is important for policymaking. We utilize household income‐expenditure surveys to examine this sector's income underreporting. The Pissarides‐Weber approach hypothesizes that data would reflect such underreporting as “excess food consumption”. Our results suggest informal sector members spend more than their formal sector counterparts with comparable reported income levels. Using this information, we estimate the average size of the true informal sector to be about 1.25 times the official estimate. The informal sector accounts for around 83% of officially reported disposable income. Therefore, true Turkish disposable income is (25%)*(83%), roughly 21% larger than the officially estimated magnitude. Journal: Journal of Economic Policy Reform Pages: 261-271 Issue: 4 Volume: 11 Year: 2008 X-DOI: 10.1080/17487870802598393 File-URL: http://hdl.handle.net/10.1080/17487870802598393 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jecprf:v:11:y:2008:i:4:p:261-271 Template-Type: ReDIF-Article 1.0 Author-Name: M. Suresh Babu Author-X-Name-First: M. Suresh Author-X-Name-Last: Babu Title: Do industrial policy reforms reduce entry barriers? Evidence from Indian manufacturing industries Abstract: Institutional regulations by licensing and capacity restrictions are often considered as barriers to competition in Indian industry. As most of these regulations have given way to market mechanisms, an increase in the number of entrants is to be expected. This paper attempts to measure the extent of barriers to entry in Indian manufacturing industries by quantifying the height of barriers for 1991/92 and, a decade after the onset of reforms, 2001/02. We find that, contrary to expectations, the height of overall barriers increased. This suggests that dismantling of commands and controls intended to ease entry seems to have paved the way for the erection and strengthening of market barriers to entry. Journal: Journal of Economic Policy Reform Pages: 289-300 Issue: 4 Volume: 11 Year: 2008 X-DOI: 10.1080/17487870802602690 File-URL: http://hdl.handle.net/10.1080/17487870802602690 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jecprf:v:11:y:2008:i:4:p:289-300 Template-Type: ReDIF-Article 1.0 Author-Name: Juan Lacomba Author-X-Name-First: Juan Author-X-Name-Last: Lacomba Author-Name: Francisco Lagos Author-X-Name-First: Francisco Author-X-Name-Last: Lagos Title: Defined contribution plan vs. defined benefits plan: reforming the legal retirement age Abstract: In the context of the current debate surrounding the reform of most social security systems, this paper analyzes the political economy of the legal retirement age. Using a life‐cycle model, we study the effects of changing the redistributive parameters on the optimal legal retirement age in a Pay‐As‐You‐Go social security system. Two pension plans are studied, with opposite results. In a defined contribution plan, an increase in the redistribution levels will delay the preferred legal retirement age. On the other hand, in a defined benefits plan, the same increase in the redistribution levels will lower this preferred age. Journal: Journal of Economic Policy Reform Pages: 1-11 Issue: 1 Volume: 12 Year: 2009 X-DOI: 10.1080/17487870802677668 File-URL: http://hdl.handle.net/10.1080/17487870802677668 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jecprf:v:12:y:2009:i:1:p:1-11 Template-Type: ReDIF-Article 1.0 Author-Name: Hsiu‐Ling Wu Author-X-Name-First: Hsiu‐Ling Author-X-Name-Last: Wu Author-Name: Chien‐Hsun Chen Author-X-Name-First: Chien‐Hsun Author-X-Name-Last: Chen Author-Name: Hui‐Ling Lin Author-X-Name-First: Hui‐Ling Author-X-Name-Last: Lin Title: Can a stock market listing help to improve the operational performance of China’s banks? Abstract: This study attempts to empirically examine the impact of initial public offerings on China’s banking sector. The period considered covers the years 1996–2004. The fixed effects and random effects models are estimated, and the empirical results show that the operational performance of listed banks is inferior to that of unlisted banks. The launching of initial public offerings by Chinese banks is found to have a significant positive impact on the return on assets. Traditional interest income still accounts for by far the largest share of the Chinese banks’ operating revenue. Journal: Journal of Economic Policy Reform Pages: 13-28 Issue: 1 Volume: 12 Year: 2009 X-DOI: 10.1080/17487870802677742 File-URL: http://hdl.handle.net/10.1080/17487870802677742 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jecprf:v:12:y:2009:i:1:p:13-28 Template-Type: ReDIF-Article 1.0 Author-Name: Sanjeev Sobhee Author-X-Name-First: Sanjeev Author-X-Name-Last: Sobhee Title: The economic success of Mauritius: lessons and policy options for Africa Abstract: As a sub‐Saharan country, Mauritius has been branded a success story in terms of its sustained economic growth performance, with major improvements in the living standards of its population at large over the past few decades. This paper has the objectives of revisiting this success story, essentially by analyzing the numerous policies that have been adopted, to provide insights into Africa’s policy options. The Mauritian case study demonstrates that no single dose of economic reforms may generate growth dividends to perpetuity, especially when the current economic environment differs from initial conditions. Journal: Journal of Economic Policy Reform Pages: 29-42 Issue: 1 Volume: 12 Year: 2009 X-DOI: 10.1080/17487870902739186 File-URL: http://hdl.handle.net/10.1080/17487870902739186 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jecprf:v:12:y:2009:i:1:p:29-42 Template-Type: ReDIF-Article 1.0 Author-Name: Yu‐Lin Wang Author-X-Name-First: Yu‐Lin Author-X-Name-Last: Wang Author-Name: Hsiu‐Yun Lee Author-X-Name-First: Hsiu‐Yun Author-X-Name-Last: Lee Title: Rules versus discretion on the choice between exchange‐rate‐targeting and monetary‐aggregate‐targeting Abstract: This paper compares the performance of inflation and welfare loss between exchange‐rate‐targeting and monetary‐aggregate‐targeting regimes for a small‐open economy characterized by a rational expectations model of the Phillips curve. We also consider rules‐versus‐discretion in policy. We obtain three interesting results. First, both regimes result in the same target rate of inflation and the smallest long‐run welfare loss, if an active contingent rule is credibly followed. Second, when discretion is undertaken, an exchange‐rate‐targeting policy is always superior to a monetary‐aggregate‐targeting one. Third, for a simple fixed rule, Friedman‐type’s monetary‐aggregate‐targeting policy works better than exchange‐rate‐targeting only under specific circumstances. Journal: Journal of Economic Policy Reform Pages: 43-55 Issue: 1 Volume: 12 Year: 2009 X-DOI: 10.1080/17487870902739210 File-URL: http://hdl.handle.net/10.1080/17487870902739210 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jecprf:v:12:y:2009:i:1:p:43-55 Template-Type: ReDIF-Article 1.0 Author-Name: Gustavo Yamada Author-X-Name-First: Gustavo Author-X-Name-Last: Yamada Author-Name: Juan Castro Author-X-Name-First: Juan Author-X-Name-Last: Castro Title: Educational attainment, growth and poverty reduction within the MDG framework: simulations and costing for the Peruvian case Abstract: We propose a model that accounts for the feedback between access to educational services, human capital accumulation and long‐run GDP growth. With this framework, it is possible to simultaneously assess the achievement of Millennium Development Goal (MDG) education targets in terms of their impact on aggregate income growth and poverty incidence. We simulate our model using Peruvian data and different planner preferences regarding access to distinct education cycles. Results reveal that to attain a significant impact on GDP growth and poverty reduction, Peru needs to extend the original set of MDG indicators to account for access to higher education levels besides primary. Journal: Journal of Economic Policy Reform Pages: 57-73 Issue: 1 Volume: 12 Year: 2009 X-DOI: 10.1080/17487870902775743 File-URL: http://hdl.handle.net/10.1080/17487870902775743 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jecprf:v:12:y:2009:i:1:p:57-73 Template-Type: ReDIF-Article 1.0 Author-Name: Giuseppe Rose Author-X-Name-First: Giuseppe Author-X-Name-Last: Rose Title: Higher education reforms and signaling equilibria Abstract: The paper examines job market signaling equilibria in the presence of perturbations coming from policy reforms and unobserved individuals’ cost functions. We show that when the single‐crossing property is preserved, in the one‐shot version of the game the basic Spence result of separation always holds. Then we show that in the repeated version of the game both separating and pooling equilibria may arise conditional on the intensity of educational policy reforms. In this case, a frequent implementation of higher education reforms may be crucial in generating pooling equilibria. Journal: Journal of Economic Policy Reform Pages: 75-90 Issue: 2 Volume: 12 Year: 2009 X-DOI: 10.1080/17487870902872847 File-URL: http://hdl.handle.net/10.1080/17487870902872847 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jecprf:v:12:y:2009:i:2:p:75-90 Template-Type: ReDIF-Article 1.0 Author-Name: Ayşe Evrensel Author-X-Name-First: Ayşe Author-X-Name-Last: Evrensel Title: Differences in bank regulations: the role of governance and corruption Abstract: This paper provides a detailed explanation of cross‐country differences in bank regulations and their sources. The results suggest that the patterns of bank regulations imply important differences between developed and developing countries. While developing countries have stricter banking regulations, they are more likely to reduce competition among banks and provide greater safety nets to existing banks. The choice of banking regulations is affected by countries’ political characteristics, which are in turn endogenous to countries’ historical experiences and cultural characteristics. When political characteristics are replaced by corruption control, less corruption leads to less denied entries and banking restrictions as well as more constrained deposit insurance schemes. This implies that bank regulations may not be easy to change. Journal: Journal of Economic Policy Reform Pages: 91-110 Issue: 2 Volume: 12 Year: 2009 X-DOI: 10.1080/17487870902872870 File-URL: http://hdl.handle.net/10.1080/17487870902872870 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jecprf:v:12:y:2009:i:2:p:91-110 Template-Type: ReDIF-Article 1.0 Author-Name: N. Nergiz Dincer Author-X-Name-First: N. Nergiz Author-X-Name-Last: Dincer Author-Name: Zeynel Ozdemir Author-X-Name-First: Zeynel Author-X-Name-Last: Ozdemir Title: The quality of fiscal adjustment: an empirical analysis of Turkey Abstract: Turkey is a country with high inflation and debt problems. Policy‐makers try to use tight fiscal policy based on high primary surplus to stabilize the economy. This study analyzes the composition of the budget, an indicator for the quality of fiscal policy and the persistence of the adjustments using ARFIMA methodology using monthly data for the period 1994:1 to 2005:11. Our results suggest that fiscal policy implemented in Turkey does not have a high quality due to the composition of expenditures. Although government is successful in cutting personnel expenditures, the results suggest that it did not implement these cuts with persistence. Moreover, decreasing transfer expenditures and a high share in expenditures were not pursued with persistence either. On the other hand, decreasing investment after 2000 both decreases the quality of the fiscal policy and has a future growth cost. Journal: Journal of Economic Policy Reform Pages: 111-126 Issue: 2 Volume: 12 Year: 2009 X-DOI: 10.1080/17487870902872896 File-URL: http://hdl.handle.net/10.1080/17487870902872896 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jecprf:v:12:y:2009:i:2:p:111-126 Template-Type: ReDIF-Article 1.0 Author-Name: John Thornton Author-X-Name-First: John Author-X-Name-Last: Thornton Title: Do fiscal responsibility laws matter? Evidence from emerging market economies suggests not Abstract: This paper asks whether the adoption of fiscal responsibility laws (FRLs) has improved fiscal performance in nine emerging market economies, as measured by developments in their key fiscal balances. Examining these economies alone, their fiscal performance improved on average between the period before FLRs were adopted and the period after they were adopted. However, emerging market economies that did not adopt FLRs also experienced improvements in their fiscal performance around the same time. The finding suggests that the better fiscal performance in the nine emerging market economies resulted from something other than the adoption of FLRs. Journal: Journal of Economic Policy Reform Pages: 127-132 Issue: 2 Volume: 12 Year: 2009 X-DOI: 10.1080/17487870902872912 File-URL: http://hdl.handle.net/10.1080/17487870902872912 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jecprf:v:12:y:2009:i:2:p:127-132 Template-Type: ReDIF-Article 1.0 Author-Name: Iris Claus Author-X-Name-First: Iris Author-X-Name-Last: Claus Title: New Zealand's economic reforms and changes in production structure Abstract: New Zealand’s reforms beginning in 1984 markedly improved the country’s economic prospects. They were one of the most radical and comprehensive programmes of structural change among countries in the Organisation for Economic Co‐operation and Development (OECD). This paper examines how New Zealand’s production structure was transformed using input output analysis. The results show that the reforms rapidly affected the economy and industries were subject to large structural change. Trade liberalisation was a central aspect of the reforms and has had dramatic effects on some industries. Journal: Journal of Economic Policy Reform Pages: 133-143 Issue: 2 Volume: 12 Year: 2009 X-DOI: 10.1080/17487870902872938 File-URL: http://hdl.handle.net/10.1080/17487870902872938 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jecprf:v:12:y:2009:i:2:p:133-143 Template-Type: ReDIF-Article 1.0 Author-Name: Khalid Sekkat Author-X-Name-First: Khalid Author-X-Name-Last: Sekkat Title: Does competition improve productivity in developing countries? Abstract: Using the manufacturing sector data at the three‐digit level, the paper examines whether the degree of competition improves productivity in developing countries. The degree of competition is measured through markups while productivity is measured through total factor productivity (TFP) and labor productivity. All are computed by industries. Taking account of endogeneity issues and of the role of relevant control variables, the results show that in Jordan and Morocco, markup has a significant and negative impact on productivity growth. In Egypt, while markup does not seem to affect productivity growth, a decrease in the share of state‐owned enterprises (SOEs) in a given industry has a significant and positive impact on productivity growth. In general, the existence of State‐Owned Enterprises is an obstacle to competition. We conclude that the greater the degree of competition, the higher the productivity in the three countries. Journal: Journal of Economic Policy Reform Pages: 145-162 Issue: 2 Volume: 12 Year: 2009 X-DOI: 10.1080/17487870902872946 File-URL: http://hdl.handle.net/10.1080/17487870902872946 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jecprf:v:12:y:2009:i:2:p:145-162 Template-Type: ReDIF-Article 1.0 Author-Name: Alberto Chong Author-X-Name-First: Alberto Author-X-Name-Last: Chong Author-Name: Jorge Guillen Author-X-Name-First: Jorge Author-X-Name-Last: Guillen Author-Name: Florencio Lopez‐de‐Silanes Author-X-Name-First: Florencio Author-X-Name-Last: Lopez‐de‐Silanes Title: Corporate governance reform and firm value in Mexico: an empirical assessment Journal: Journal of Economic Policy Reform Pages: 163-188 Issue: 3 Volume: 12 Year: 2009 X-DOI: 10.1080/17487870903105346 File-URL: http://hdl.handle.net/10.1080/17487870903105346 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jecprf:v:12:y:2009:i:3:p:163-188 Template-Type: ReDIF-Article 1.0 Author-Name: Jamal Ibrahim Haidar Author-X-Name-First: Jamal Ibrahim Author-X-Name-Last: Haidar Title: The mark‐to‐market valuation and executive pay package regulations within the 2009 US (Bailout) Emergency Economic Stabilization Act Abstract: The paper shows that the effect of the Emergency Economic Stabilization Act (EESA) is ambiguous. It discusses the benefits and costs of mark‐to‐market valuation and design of executive pay package policies within the US 2009 EESA. It highlights how the mark‐to‐market valuation standard influenced financial institutions, explains why mark‐to‐market policy suspension proponents can support the EESA, and realizes how the Financial Accounting Standards Board (FASB) and Securities Exchange Commission (SEC) can count on the EESA while assessing the need and cost of the mark‐to‐market policy. Also, the paper discusses the promise of executive wage caps within the EESA. Moreover, it differentiates between executive pay packages pre‐ and post‐EESA policies. Journal: Journal of Economic Policy Reform Pages: 189-199 Issue: 3 Volume: 12 Year: 2009 X-DOI: 10.1080/17487870903105361 File-URL: http://hdl.handle.net/10.1080/17487870903105361 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jecprf:v:12:y:2009:i:3:p:189-199 Template-Type: ReDIF-Article 1.0 Author-Name: Chun‐Ping Chang Author-X-Name-First: Chun‐Ping Author-X-Name-Last: Chang Author-Name: Chien‐Chiang Lee Author-X-Name-First: Chien‐Chiang Author-X-Name-Last: Lee Title: Does candidates' advertising spending help winning? Abstract: This paper investigates the importance of political expenditures as the primary determinants of vote shares for the Taiwan 2004 legislator campaigns with multi‐member districts. Our main findings are as follows. First, advertising spending, candidates in the same party as the mayor, the education level of voters and the degree of race competition had a strong effect on the candidates' vote shares but not on economic performance. Second, the advertising spending of both incumbents and challengers had a significant effect on vote shares, but the effects were greater for challengers than for incumbents. Third, the two major political camps, that is, the Pan‐Blue and Pan‐Green, showed that spending exerts a corresponding influence on vote shares. Fourth, we also discovered that the spending coefficients for the winners were larger than those for the losers. Finally, the logit model demonstrates the result of the impact of advertising expenditures on the predicted probability of winning the election. Journal: Journal of Economic Policy Reform Pages: 201-218 Issue: 3 Volume: 12 Year: 2009 X-DOI: 10.1080/17487870903105387 File-URL: http://hdl.handle.net/10.1080/17487870903105387 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jecprf:v:12:y:2009:i:3:p:201-218 Template-Type: ReDIF-Article 1.0 Author-Name: Francesca Gastaldi Author-X-Name-First: Francesca Author-X-Name-Last: Gastaldi Author-Name: Paolo Liberati Author-X-Name-First: Paolo Author-X-Name-Last: Liberati Title: Tax credits for dependent children and child benefits: what do we learn from the Italian experience? Abstract: This paper assesses the relative merits of tax credits for dependent children and child benefits in redistributing income and alleviating poverty in Italy. The main result is that the great emphasis put by Italian policy‐makers in designing tax credits in the last 15 years has been mostly misplaced if the aim was that of supporting low‐income households. On the other hand, child benefits – potentially a more effective tool – have not proven to be a growing source of redistribution in the same period. Overall, the Italian experience shows a rather uncertain path in helping families with children, with comparable results achieved by very complex and much simpler tax/benefit systems. Journal: Journal of Economic Policy Reform Pages: 219-234 Issue: 3 Volume: 12 Year: 2009 X-DOI: 10.1080/17487870903105569 File-URL: http://hdl.handle.net/10.1080/17487870903105569 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jecprf:v:12:y:2009:i:3:p:219-234 Template-Type: ReDIF-Article 1.0 Author-Name: Jesús Alsasua Author-X-Name-First: Jesús Author-X-Name-Last: Alsasua Author-Name: Javier Bilbao‐Ubillos Author-X-Name-First: Javier Author-X-Name-Last: Bilbao‐Ubillos Author-Name: Jon Olaskoaga Author-X-Name-First: Jon Author-X-Name-Last: Olaskoaga Title: Do politics matter? The influence of political and institutional variables on social protection spending in the European Union Abstract: This paper analyses the potential role of per capita income, the socio‐demographic characteristics of the population, and political, institutional and cultural elements as explanatory variables of the level of social protection provided in European countries. The ultimate objective is to test whether political and institutional aspects specific to member states are significant in explaining the differences between national social expenditure levels in different European Union (EU) member states. The empirical study focuses on the period from 1985 to 1999. Journal: Journal of Economic Policy Reform Pages: 235-242 Issue: 3 Volume: 12 Year: 2009 X-DOI: 10.1080/17487870903105585 File-URL: http://hdl.handle.net/10.1080/17487870903105585 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jecprf:v:12:y:2009:i:3:p:235-242 Template-Type: ReDIF-Article 1.0 Author-Name: G. Chidambaran Iyer Author-X-Name-First: G. Chidambaran Author-X-Name-Last: Iyer Title: Indian multinationals, foreign multinationals and domestic firms Abstract: Empirical evidence suggests that multinationals exhibit greater productivity than local firms. Emergence of Indian multinationals in the last decade raises an interesting question. Do Indian multinationals have greater productivity than foreign multinationals in India? Our results indeed suggest that Indian multinationals have higher productivity than foreign multinationals. Journal: Journal of Economic Policy Reform Pages: 243-247 Issue: 3 Volume: 12 Year: 2009 X-DOI: 10.1080/17487870903105601 File-URL: http://hdl.handle.net/10.1080/17487870903105601 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jecprf:v:12:y:2009:i:3:p:243-247 Template-Type: ReDIF-Article 1.0 Author-Name: Fuhmei Wang Author-X-Name-First: Fuhmei Author-X-Name-Last: Wang Title: The effects of foreign borrowing policies on economic growth: success or failure? Abstract: Foreign savings closely interact with economic performance. External loans are partly influenced by the government’s attempt to balance its budget. This study investigates the relationship between public sector foreign borrowing and economic growth. Results indicate that only under circumstances of (1) moderate income tax rates to guarantee the solvency of external loans and (2) households having the patience to substitute consumption between different periods can domestic government finance fiscal deficits by borrowing abroad, and thereby enhance investment and economic growth. Otherwise, additional foreign borrowing is associated with higher indebtedness and slower economic growth. Journal: Journal of Economic Policy Reform Pages: 273-284 Issue: 4 Volume: 12 Year: 2009 X-DOI: 10.1080/17487870903314567 File-URL: http://hdl.handle.net/10.1080/17487870903314567 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jecprf:v:12:y:2009:i:4:p:273-284 Template-Type: ReDIF-Article 1.0 Author-Name: Yenpao Chen Author-X-Name-First: Yenpao Author-X-Name-Last: Chen Author-Name: Chien‐Hsun Chen Author-X-Name-First: Chien‐Hsun Author-X-Name-Last: Chen Author-Name: Weiju Chen Author-X-Name-First: Weiju Author-X-Name-Last: Chen Title: The impact of related party transactions on the operational performance of listed companies in China Abstract: This study uses a comprehensive sample of 763 Chinese listed companies to explore the relationship between the extent of related party transactions and operational performance. The empirical results show that when the listed company is controlled by a related party, the higher the level of related party transactions, the worse the operational performance of the listed company; this is particularly true in the case of related party transactions that involve sales, loans, guarantees and mortgages, or leases. There is thus a clear need to improve the regulation of related party transactions and the related disclosure requirements. Journal: Journal of Economic Policy Reform Pages: 285-297 Issue: 4 Volume: 12 Year: 2009 X-DOI: 10.1080/17487870903314575 File-URL: http://hdl.handle.net/10.1080/17487870903314575 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jecprf:v:12:y:2009:i:4:p:285-297 Template-Type: ReDIF-Article 1.0 Author-Name: Krishna Vadlamannati Author-X-Name-First: Krishna Author-X-Name-Last: Vadlamannati Author-Name: Artur Tamazian Author-X-Name-First: Artur Author-X-Name-Last: Tamazian Title: Growth effects of FDI in 80 developing economies: the role of policy reforms and institutional constraints Abstract: Theoretical and empirical literatures have identified several channels through which foreign direct investment (FDI) influences economic growth. This paper examines the impact of FDI on economic output growth per worker using aggregate production function augmented with FDI inflows, economic policy reforms and institutional constraints. The paper covers 80 developing countries over the period 1980–2006. We use panel data and employ fixed, random effects and GMM methods for estimation. Our results highlight the importance of FDI, policy reforms and institutional development for growth in developing economies. Finally, we demonstrate that irrespective of reforms and institutions, an increase in FDI affects output growth positively. Journal: Journal of Economic Policy Reform Pages: 299-322 Issue: 4 Volume: 12 Year: 2009 X-DOI: 10.1080/17487870903314583 File-URL: http://hdl.handle.net/10.1080/17487870903314583 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jecprf:v:12:y:2009:i:4:p:299-322 Template-Type: ReDIF-Article 1.0 Author-Name: Nimai Das Author-X-Name-First: Nimai Author-X-Name-Last: Das Author-Name: Debnarayan Sarker Author-X-Name-First: Debnarayan Author-X-Name-Last: Sarker Title: Impact of a moral hazard problem in the Joint Forest Management Programme: a study from forest‐dependent households in West Bengal Abstract: This study seeks to explore the impact of a moral hazard problem in the Joint Forest Management (JFM) programme between the government and forest fringe communities of a province in West Bengal, India. It suggests that if there is no incentive plan for the poor, it is hard for the government to monitor their actions. The poor tend to take welfare subsidies and yet harvest optimally. A good incentive fee dependent on their work (output) is required for livelihood sustenance of poor people and sustainability of forest resources. Journal: Journal of Economic Policy Reform Pages: 323-331 Issue: 4 Volume: 12 Year: 2009 X-DOI: 10.1080/17487870903314617 File-URL: http://hdl.handle.net/10.1080/17487870903314617 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jecprf:v:12:y:2009:i:4:p:323-331 Template-Type: ReDIF-Article 1.0 Author-Name: Govindasamy Agoramoorthy Author-X-Name-First: Govindasamy Author-X-Name-Last: Agoramoorthy Author-Name: Minna Hsu Author-X-Name-First: Minna Author-X-Name-Last: Hsu Title: India needs sanitation policy reform to enhance public health Abstract: We investigate the impact of 100 newly built toilets in villages across Dahod District (Gujarat State, India) by a non‐government agency during 2005–2007. The toilets significantly reduced not only the cost of medical treatments but also the loss of wages induced by sanitation‐related diseases. Money saved from sanitation illnesses for one person for a period of two years could cover the cost of a toilet. It costs USD 200 to build a cost‐effective toilet, but the Government of India’s 25% subsidy since January 2009 covers only USD 50. We recommend increasing the subsidy for toilets so that future health care to treat sanitation illnesses can be significantly reduced. Journal: Journal of Economic Policy Reform Pages: 333-342 Issue: 4 Volume: 12 Year: 2009 X-DOI: 10.1080/17487870903314625 File-URL: http://hdl.handle.net/10.1080/17487870903314625 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jecprf:v:12:y:2009:i:4:p:333-342 Template-Type: ReDIF-Article 1.0 Author-Name: Chun‐Ping Chang Author-X-Name-First: Chun‐Ping Author-X-Name-Last: Chang Author-Name: Yoonbai Kim Author-X-Name-First: Yoonbai Author-X-Name-Last: Kim Author-Name: Yung‐hsiang Ying Author-X-Name-First: Yung‐hsiang Author-X-Name-Last: Ying Title: Economics and politics in the United States: a state‐level investigation Abstract: We examine state income and government spending data to investigate the role of political parties and elections in state business cycles of the United States, and find strong support for the partisan political business cycles, both traditional and rational versions. The growth rate of per capita real income and government spending tend to be higher (lower) with a Democratic (Republican) governor as well as a Democratic (Republican) president. In case of economic growth, we find some evidence for opportunistic cycles induced by national level politics; meanwhile, both national and state governments seem to generate expansionary policy in election years. Journal: Journal of Economic Policy Reform Pages: 343-354 Issue: 4 Volume: 12 Year: 2009 X-DOI: 10.1080/17487870903314633 File-URL: http://hdl.handle.net/10.1080/17487870903314633 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jecprf:v:12:y:2009:i:4:p:343-354 Template-Type: ReDIF-Article 1.0 Author-Name: William Nye Author-X-Name-First: William Author-X-Name-Last: Nye Title: The implications of “zeroing” for enforcement of US antidumping laws Abstract: The United States enforces its antidumping laws differently from other countries. The United States, but not other countries, uses “zeroing” to determine whether imports are being sold in the US at less than “normal” value. Rather than simply comparing the “normal” value with the average sale price in the US, the US truncates the observations of US sales transactions, so that transactions at prices above “normal” value are counted as if they occurred at the “normal” value. This procedure, which has been challenged at least six times by the World Trade Organization, may cost the US $46–112 million/year. Journal: Journal of Economic Policy Reform Pages: 263-271 Issue: 4 Volume: 12 Year: 2009 X-DOI: 10.1080/17487870903314641 File-URL: http://hdl.handle.net/10.1080/17487870903314641 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jecprf:v:12:y:2009:i:4:p:263-271 Template-Type: ReDIF-Article 1.0 Author-Name: Bonwoo Koo Author-X-Name-First: Bonwoo Author-X-Name-Last: Koo Title: The transitional dynamics of patent reform Abstract: This study analyzes the dynamic effects of a patent reform in a model of cumulative innovation. It finds that the incentives at different stages of the innovation process are not uniform. The first innovator captures most of producers’ surplus from a policy reform. The high incentive of the first innovator may dominate the potentially negative incentives of subsequent innovations. The optimal patent policy from a dynamic social welfare perspective can be quite different from that of steady‐state social welfare. Concerns about the problems of patent thickets or anti‐commons may not be too serious if dynamic social welfare is considered. Journal: Journal of Economic Policy Reform Pages: 249-262 Issue: 4 Volume: 12 Year: 2009 X-DOI: 10.1080/17487870903326694 File-URL: http://hdl.handle.net/10.1080/17487870903326694 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jecprf:v:12:y:2009:i:4:p:249-262 Template-Type: ReDIF-Article 1.0 Author-Name: Pedro Moncarz Author-X-Name-First: Pedro Author-X-Name-Last: Moncarz Title: Argentina's import patterns: trade preferences and the extensive margin of trade Abstract: We estimate the influence of trade preferences granted by Argentina on the origin of its imports. We try to identify if changes in Argentina's trade policy toward a set of countries had a differential effect, depending on whether goods were already traded, or on the contrary, if tariff changes affected mostly imports of new goods. We distinguish between the effects of changing tariffs and changing trade preferences. The econometric evidence shows that the effect of changes in tariff preferences on the probability of Argentina importing from other Asociación Latinoamericana de Integración (ALADI) members has been rather small, with most of the effect being explained by changes in tariff rates levied on imports from these countries. This result is stronger in the case of imports from Brazil. Journal: Journal of Economic Policy Reform Pages: 61-85 Issue: 1 Volume: 13 Year: 2010 X-DOI: 10.1080/17487870903546200 File-URL: http://hdl.handle.net/10.1080/17487870903546200 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jecprf:v:13:y:2010:i:1:p:61-85 Template-Type: ReDIF-Article 1.0 Author-Name: Davide Castellani Author-X-Name-First: Davide Author-X-Name-Last: Castellani Author-Name: Giorgia Giovannetti Author-X-Name-First: Giorgia Author-X-Name-Last: Giovannetti Title: Productivity and the international firm: dissecting heterogeneity Abstract: Higher productivity of multinational firms and exporters has been widely documented in the literature, but the sources of this heterogeneity are still a black box. Using an original dataset on Italian firms, we show that higher total factor productivity of international firms can be to some extent explained by higher R&D intensity and managerial capabilities. However, our results suggest that heterogeneity is more in the slope than in the constant of the production function. In particular, allowing international firms to have different return to labour and capital inputs, we are able to account for their entire productivity premium. This has implications for both labour and capital market reforms. Journal: Journal of Economic Policy Reform Pages: 25-42 Issue: 1 Volume: 13 Year: 2010 X-DOI: 10.1080/17487870903546226 File-URL: http://hdl.handle.net/10.1080/17487870903546226 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jecprf:v:13:y:2010:i:1:p:25-42 Template-Type: ReDIF-Article 1.0 Author-Name: Paul Alagidede Author-X-Name-First: Paul Author-X-Name-Last: Alagidede Title: Editorial Journal: Pages: 1-2 Issue: 1 Volume: 13 Year: 2010 X-DOI: 10.1080/17487870903546242 File-URL: http://hdl.handle.net/10.1080/17487870903546242 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jecprf:v:13:y:2010:i:1:p:1-2 Template-Type: ReDIF-Article 1.0 Author-Name: Maria Cipollina Author-X-Name-First: Maria Author-X-Name-Last: Cipollina Author-Name: Luca Salvatici Author-X-Name-First: Luca Author-X-Name-Last: Salvatici Title: The trade impact of European Union agricultural preferences Abstract: We assess the impact on agricultural trade of European Union (EU) trade policies, using a gravity model based on disaggregated trade flows from 161 developing countries (DCs) to 15 EU member countries. We use a sample selection framework to account for potential selection bias of positive trade flows and provide an explicit measure for relative preference margins. From a policy perspective, our results debunk some of the most widespread criticisms of preferential policies: EU preferences matter and have a positive impact on DCs agricultural exports at both the extensive and intensive margins, although with significant differences across sectors. Journal: Journal of Economic Policy Reform Pages: 87-106 Issue: 1 Volume: 13 Year: 2010 X-DOI: 10.1080/17487870903546259 File-URL: http://hdl.handle.net/10.1080/17487870903546259 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jecprf:v:13:y:2010:i:1:p:87-106 Template-Type: ReDIF-Article 1.0 Author-Name: Ilke Van Beveren Author-X-Name-First: Ilke Author-X-Name-Last: Van Beveren Author-Name: Hylke Vandenbussche Author-X-Name-First: Hylke Author-X-Name-Last: Vandenbussche Title: Product and process innovation and firms' decision to export Abstract: We analyze the relationship between firm‐level innovation activities and firms' propensity to start exporting for firms in a small open economy. We measure innovation by innovative effort (R&D) as well as by innovative output (product and process innovation). After carefully correcting for endogeneity and selection issues, the evidence points to firms self‐selecting into innovation in anticipation of their entry into export markets, rather than product and process innovation triggering entry into the export market. These results suggest that governments can foster firm‐level innovation through trade liberalization. Journal: Journal of Economic Policy Reform Pages: 3-24 Issue: 1 Volume: 13 Year: 2010 X-DOI: 10.1080/17487870903546267 File-URL: http://hdl.handle.net/10.1080/17487870903546267 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jecprf:v:13:y:2010:i:1:p:3-24 Template-Type: ReDIF-Article 1.0 Author-Name: Jan Van Hove Author-X-Name-First: Jan Author-X-Name-Last: Van Hove Title: Variety and quality in intra‐European manufacturing trade: the impact of innovation and technological spillovers Abstract: Recent analysis of detailed product‐level trade data points to substantial heterogeneity in variety and quality patterns in international trade. We study the evidence of variety and quality of manufacturing trade among European Union countries. The existing methodology is extended by distinguishing between various industrial sectors. In particular we focus on the role of technological innovation and technological spillovers. Although the impact of technological innovation depends on the innovation measure used, there appears to be a quality‐upgrading effect originating from innovation. Moreover, technological spillovers increase both the variety and quality of intra‐European trade. Journal: Journal of Economic Policy Reform Pages: 43-59 Issue: 1 Volume: 13 Year: 2010 X-DOI: 10.1080/17487870903546275 File-URL: http://hdl.handle.net/10.1080/17487870903546275 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jecprf:v:13:y:2010:i:1:p:43-59 Template-Type: ReDIF-Article 1.0 Author-Name: Marco Ercolani Author-X-Name-First: Marco Author-X-Name-Last: Ercolani Title: Transitional price rises with the adoption of the euro: aggregate and disaggregate sector evidence Abstract: This paper presents a time‐series regression analysis of price inflation at the time of the euro currency changeover in January 2002. Cross‐equation tests on 12 euro countries and three non‐euro EU countries are used to identify significant price changes around that time. For a small number of product and service categories, positive price changes immediately after the euro changeover suggest the possible existence of menu costs, sellers' rounding up of prices or buyers' temporary rational inattention. However, the lack of evidence for reduced inflation immediately prior to the euro changeover suggests menu costs are not important. Journal: Journal of Economic Policy Reform Pages: 137-157 Issue: 2 Volume: 13 Year: 2010 X-DOI: 10.1080/17487871003700747 File-URL: http://hdl.handle.net/10.1080/17487871003700747 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jecprf:v:13:y:2010:i:2:p:137-157 Template-Type: ReDIF-Article 1.0 Author-Name: Yigit Aydede Author-X-Name-First: Yigit Author-X-Name-Last: Aydede Title: Generational selfishness and social security: a time‐inconsistency problem in parametric reforms of PAYG Abstract: This paper examines the increase in generational selfishness in parametric reforms of pay‐as‐you‐go (PAYG) pension systems as a potential outcome of the time‐inconsistency problem in optimal policies. When an adverse demographic shock occurs, the planner has to decide on its generational distribution in a parametric reform meant to keep the PAYG system running: benefits can be fixed for seniors or taxes can be stabilized for the young. This paper shows that if the compromising optimal policy between these two extreme examples is nonbinding, it becomes time‐inconsistent. And, parametric reforms tend to be biased in favor of contemporaneous generations, unfair in terms of generational justice, and inefficient in terms of the optimal level of consumption. Journal: Journal of Economic Policy Reform Pages: 179-190 Issue: 2 Volume: 13 Year: 2010 X-DOI: 10.1080/17487871003700762 File-URL: http://hdl.handle.net/10.1080/17487871003700762 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jecprf:v:13:y:2010:i:2:p:179-190 Template-Type: ReDIF-Article 1.0 Author-Name: Nicholas Odhiambo Author-X-Name-First: Nicholas Author-X-Name-Last: Odhiambo Title: Interest rate reforms, financial deepening and economic growth in Tanzania: a dynamic linkage Abstract: In this paper we examine the dynamic relationship between interest rate reforms and economic growth in Tanzania using two tests. In the first test, we examine the impact of interest rate reforms on financial deepening using a financial deepening model. In the second test, we examine whether the financial deepening, which results from interest rate reforms, Granger‐causes economic growth – using a trivariate model. The empirical findings of our results reveal that there is a significant positive relationship between interest rate reforms and economic growth in Tanzania. However, the results fail to find any support for finance‐led growth. Journal: Journal of Economic Policy Reform Pages: 201-212 Issue: 2 Volume: 13 Year: 2010 X-DOI: 10.1080/17487871003700770 File-URL: http://hdl.handle.net/10.1080/17487871003700770 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jecprf:v:13:y:2010:i:2:p:201-212 Template-Type: ReDIF-Article 1.0 Author-Name: John Chiwuzulum Odozi Author-X-Name-First: John Author-X-Name-Last: Chiwuzulum Odozi Author-Name: Timothy Taiwo Awoyemi Author-X-Name-First: Timothy Author-X-Name-Last: Taiwo Awoyemi Author-Name: Bolarin Titus Omonona Author-X-Name-First: Bolarin Titus Author-X-Name-Last: Omonona Title: Household poverty and inequality: the implication of migrants’ remittances in Nigeria Abstract: This article examines the nature of migrant remittances and the amount by which income poverty and inequality will be reduced given migrants’ remittances. We used the living standard survey (NLSS) data set produced by the government of Nigeria to help track poverty reduction progress. The unit of analysis was the household, upon which information on remittances was analysed. From the results, 94% of households received remittances through internal channels while less than 5% received them through international channels. Remittances alleviated poverty head count by 20% and helped to equalize household income inequality by 25%. Journal: Journal of Economic Policy Reform Pages: 191-199 Issue: 2 Volume: 13 Year: 2010 X-DOI: 10.1080/17487871003700788 File-URL: http://hdl.handle.net/10.1080/17487871003700788 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jecprf:v:13:y:2010:i:2:p:191-199 Template-Type: ReDIF-Article 1.0 Author-Name: Shenggang Yang Author-X-Name-First: Shenggang Author-X-Name-Last: Yang Author-Name: Lai Wei Author-X-Name-First: Lai Author-X-Name-Last: Wei Title: Detecting money laundering using filtering techniques: a multiple‐criteria index Abstract: Money laundering is a dynamic activity attempting to circumvent anti‐money laundering (AML) actions. We propose a money‐laundering detection approach encompassing three separate detection measures applied simultaneously, providing a consolidated index to minimize circumvention. The index incorporates three detection measures: (1) deviations in trading volume and frequency; (2) unusual payments to or receipts from an atypical trade partner; and (3) Benford’s Law, based on the number of times a specific digit occurs in a particular position in numbers to detect financial fraud. Finally, we design a numerical test that any reasonable detection approach should satisfy. Our results successfully discover possible fraud planted in the simulated data. Journal: Journal of Economic Policy Reform Pages: 159-178 Issue: 2 Volume: 13 Year: 2010 X-DOI: 10.1080/17487871003700796 File-URL: http://hdl.handle.net/10.1080/17487871003700796 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jecprf:v:13:y:2010:i:2:p:159-178 Template-Type: ReDIF-Article 1.0 Author-Name: Ralph Chami Author-X-Name-First: Ralph Author-X-Name-Last: Chami Author-Name: Connel Fullenkamp Author-X-Name-First: Connel Author-X-Name-Last: Fullenkamp Author-Name: Sunil Sharma Author-X-Name-First: Sunil Author-X-Name-Last: Sharma Title: A framework for financial market development Abstract: A framework for examining the process of financial market development is proposed. The framework is anchored in studying the incentives facing the key players in financial markets – borrowers, lenders, liquidity providers, and regulators – whose actions determine whether and how markets develop. While different financial instruments embody different concessions by borrowers and lenders, the framework emphasizes two main compromises: the tradeoffs between maturity and collateral, and between seniority and control in the sequencing of market development. Journal: Journal of Economic Policy Reform Pages: 107-135 Issue: 2 Volume: 13 Year: 2010 X-DOI: 10.1080/17487871003700804 File-URL: http://hdl.handle.net/10.1080/17487871003700804 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jecprf:v:13:y:2010:i:2:p:107-135 Template-Type: ReDIF-Article 1.0 Author-Name: Luke Okafor Author-X-Name-First: Luke Author-X-Name-Last: Okafor Author-Name: Joanna Tyrowicz Author-X-Name-First: Joanna Author-X-Name-Last: Tyrowicz Title: Saving less when there is more foreign lending? Foreign debt and savings in developing countries Abstract: Although literature has given considerable attention to the effects of foreign debt on growth, we still know little about its effects on the internal potential for capital formation. Literature suggests a number of channels through which the availability of foreign financing could affect domestic savings. We test empirically this relationship using data for Sub‐Saharan Africa and Latin America and the Caribbean over 1975–2004. Controlling for endogeneity, we find that foreign debt adversely influences domestic savings especially in the long run. The results are not susceptible to the choice of countries, although few outliers should be noted. Journal: Journal of Economic Policy Reform Pages: 213-223 Issue: 3 Volume: 13 Year: 2010 X-DOI: 10.1080/17487870.2010.503081 File-URL: http://hdl.handle.net/10.1080/17487870.2010.503081 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jecprf:v:13:y:2010:i:3:p:213-223 Template-Type: ReDIF-Article 1.0 Author-Name: Josh Ederington Author-X-Name-First: Josh Author-X-Name-Last: Ederington Author-Name: Phillip McCalman Author-X-Name-First: Phillip Author-X-Name-Last: McCalman Title: The liberalization of trade and foreign direct investment: a political economy analysis Abstract: This paper considers the implications of having trade and investment liberalization occur at different points in time. It is found that such a sequencing can be detrimental to the process of liberalization, but can never be beneficial. In particular, it is possible to find distributions of factor ownership where simultaneous trade and investment liberalization would be acceptable to the median voter, yet trade liberalization followed by investment liberalization would not. Finally, the paper derives some predictions about the effect of relative size and factor intensity differences on the likelihood of investment liberalization. Journal: Journal of Economic Policy Reform Pages: 225-240 Issue: 3 Volume: 13 Year: 2010 X-DOI: 10.1080/17487870.2010.503084 File-URL: http://hdl.handle.net/10.1080/17487870.2010.503084 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jecprf:v:13:y:2010:i:3:p:225-240 Template-Type: ReDIF-Article 1.0 Author-Name: Rangan Gupta Author-X-Name-First: Rangan Author-X-Name-Last: Gupta Author-Name: Emmanuel Ziramba Author-X-Name-First: Emmanuel Author-X-Name-Last: Ziramba Title: Optimal public policy with endogenous mortality Abstract: We analyze the welfare‐maximizing policy mix between explicit and implicit taxation, where the probability of survival of the young agents depends upon the share of government expenditure on health, education and infrastructure. We show that increases in the survival probability lead to an increase in the reliance on seigniorage as a welfare maximizing outcome. However, the seigniorage tax base must be large enough for the benevolent planner to use the inflation tax. Journal: Journal of Economic Policy Reform Pages: 241-249 Issue: 3 Volume: 13 Year: 2010 X-DOI: 10.1080/17487870.2010.503085 File-URL: http://hdl.handle.net/10.1080/17487870.2010.503085 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jecprf:v:13:y:2010:i:3:p:241-249 Template-Type: ReDIF-Article 1.0 Author-Name: Chun‐Ping Chang Author-X-Name-First: Chun‐Ping Author-X-Name-Last: Chang Author-Name: Chien‐Chiang Lee Author-X-Name-First: Chien‐Chiang Author-X-Name-Last: Lee Title: US macroeconomic conditions and asymmetric adjustment in Presidential approval Abstract: While voters may punish governments for worsening economic conditions, they may not reward them symmetrically for improving conditions. We examine whether US macroeconomic conditions affect Presidential approval asymmetrically using quarterly data from 1961_I to 2009_II. The results suggest that the relationship between Presidential approval and economic aggregates is nonlinear. Long‐run causality runs from the economic variables to Presidential support. The speed of adjustment towards long‐run equilibrium relationship also differs when conditions worsen from when they improve. Finally, we explore the impact of other factors, such as war and Presidential scandal on Presidential approval. Journal: Journal of Economic Policy Reform Pages: 251-258 Issue: 3 Volume: 13 Year: 2010 X-DOI: 10.1080/17487870.2010.503087 File-URL: http://hdl.handle.net/10.1080/17487870.2010.503087 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jecprf:v:13:y:2010:i:3:p:251-258 Template-Type: ReDIF-Article 1.0 Author-Name: José Enrique Devesa‐Carpio Author-X-Name-First: José Enrique Author-X-Name-Last: Devesa‐Carpio Author-Name: Mar Devesa‐Carpio Author-X-Name-First: Mar Author-X-Name-Last: Devesa‐Carpio Title: The cost and actuarial imbalance of pay‐as‐you‐go systems: the case of Spain Abstract: This work determines the actuarial cost of delivering a monetary unit of pension in the case of a pay‐as‐you‐go system. The model is also applied to determining the imbalance and the unitary pension cost of the contributory pension system of the Spanish Social Security system. The study covers all benefits and all regimes for five consecutive years from 2002 to 2006. Policy alternatives are presented that would allow the system to be brought back into balance by actuarially equating the cost to the value of the pension delivered. Journal: Journal of Economic Policy Reform Pages: 259-276 Issue: 3 Volume: 13 Year: 2010 X-DOI: 10.1080/17487870.2010.503088 File-URL: http://hdl.handle.net/10.1080/17487870.2010.503088 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jecprf:v:13:y:2010:i:3:p:259-276 Template-Type: ReDIF-Article 1.0 Author-Name: Cuneyt Koyuncu Author-X-Name-First: Cuneyt Author-X-Name-Last: Koyuncu Author-Name: Harun Ozturkler Author-X-Name-First: Harun Author-X-Name-Last: Ozturkler Author-Name: Rasim Yilmaz Author-X-Name-First: Rasim Author-X-Name-Last: Yilmaz Title: Privatization and corruption in transition economies: a panel study Abstract: By using three corruption indices, six privatization indicators, and taking the endogeneity problem into consideration, we test the hypothesis that privatization contributes to a decrease in corruption in transition economies. We identified a highly statistically significant and negative association between privatization and corruption in transition economies for three different corruption indices and six different privatization indicators. Journal: Journal of Economic Policy Reform Pages: 277-284 Issue: 3 Volume: 13 Year: 2010 X-DOI: 10.1080/17487870.2010.503099 File-URL: http://hdl.handle.net/10.1080/17487870.2010.503099 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jecprf:v:13:y:2010:i:3:p:277-284 Template-Type: ReDIF-Article 1.0 Author-Name: Manmohan Agarwal Author-X-Name-First: Manmohan Author-X-Name-Last: Agarwal Author-Name: Susmita Mitra Author-X-Name-First: Susmita Author-X-Name-Last: Mitra Title: Role of government in trade and investment boom: lessons from East Asia Abstract: This paper extends the empirical analysis on Rodrik’s (1995a) domestic investment‐led export growth model for East Asia to nine East Asian countries for a longer time period, 1960 through 2004, and tests whether openness Granger‐caused investment or vice versa. Our results suggest that there can be no single conclusion about the role of investment in East Asia. Causality has also changed for some countries in different time periods. We question the exogeneity of the investment boom in East Asia, a key assumption made by Rodrik. Government’s incentives encouraged investment in export industries through different channels. Journal: Journal of Economic Policy Reform Pages: 285-304 Issue: 4 Volume: 13 Year: 2010 X-DOI: 10.1080/17487870.2010.523954 File-URL: http://hdl.handle.net/10.1080/17487870.2010.523954 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jecprf:v:13:y:2010:i:4:p:285-304 Template-Type: ReDIF-Article 1.0 Author-Name: Manmohan Agarwal Author-X-Name-First: Manmohan Author-X-Name-Last: Agarwal Author-Name: Bharat Hazari Author-X-Name-First: Bharat Author-X-Name-Last: Hazari Author-Name: Li Xindun Author-X-Name-First: Li Author-X-Name-Last: Xindun Title: Corruption, foreign aid and welfare to the poor Abstract: This paper investigates the impact of foreign aid and corruption on the welfare of different classes in an economy that receives aid and uses it to finance a public good. We use a general equilibrium model that consists of three goods and three income classes to derive our results. The most important result we obtain is to show that under certain conditions, aid and corruption immiserize the poor. Journal: Journal of Economic Policy Reform Pages: 305-312 Issue: 4 Volume: 13 Year: 2010 X-DOI: 10.1080/17487870.2010.523956 File-URL: http://hdl.handle.net/10.1080/17487870.2010.523956 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jecprf:v:13:y:2010:i:4:p:305-312 Template-Type: ReDIF-Article 1.0 Author-Name: Azim Essaji Author-X-Name-First: Azim Author-X-Name-Last: Essaji Author-Name: Gregory Sweeney Author-X-Name-First: Gregory Author-X-Name-Last: Sweeney Author-Name: Alexandros Kotsopoulos Author-X-Name-First: Alexandros Author-X-Name-Last: Kotsopoulos Title: Equality through exposure to imports? International trade and the racial wage gap Abstract: A key implication of Becker’s (1957) work on discrimination is that greater product market competition can reduce employment discrimination generally, and discriminatory wage gaps in particular. Using US data on manufacturing wages and import exposure, we explore whether increased competition, in the form of a heightened exposure to imports, reduces the racial wage gap. Our findings support Becker’s contention. We find that import exposure helped narrow the racial wage gap by about 1.4 percentage points between 1983 and 1993. The effect is especially pronounced among the most disadvantaged: unskilled Southern workers. For them, import exposure helped reduce racial wage disparities by 2.2 percentage points. Journal: Journal of Economic Policy Reform Pages: 313-323 Issue: 4 Volume: 13 Year: 2010 X-DOI: 10.1080/17487870.2010.523968 File-URL: http://hdl.handle.net/10.1080/17487870.2010.523968 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jecprf:v:13:y:2010:i:4:p:313-323 Template-Type: ReDIF-Article 1.0 Author-Name: S. Subramanian Author-X-Name-First: S. Author-X-Name-Last: Subramanian Title: Liberty, equality, and impossibility: some general results in the space of ‘soft’ preferences Abstract: This paper is concerned with examining the mutual compatibility of the ethical principles of equity and liberty in a social choice framework of ordinally formulated vague preferences. With sufficiently weakened versions of the liberty and equity principles, one can secure an existence result in a ‘relation‐functional’ setting. However, difficulties tend to re‐appear in a ‘choice‐functional’ setting, when one subscribes to the notion that while preference may be vague, choice must perforce be exact. Journal: Journal of Economic Policy Reform Pages: 325-341 Issue: 4 Volume: 13 Year: 2010 X-DOI: 10.1080/17487870.2010.523970 File-URL: http://hdl.handle.net/10.1080/17487870.2010.523970 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jecprf:v:13:y:2010:i:4:p:325-341 Template-Type: ReDIF-Article 1.0 Author-Name: Satish Jain Author-X-Name-First: Satish Author-X-Name-Last: Jain Title: On the efficiency of the negligence rule Abstract: The three versions of the negligence rule discussed in the literature differ regarding whether a negligent injurer is liable for the entire loss or only for the incremental loss; or regarding whether negligence is defined as failure to take at least due care or failure to take a cost‐justified precaution. It is shown in the paper that the incremental version with untaken precaution notion of negligence is not efficient; not even for the unilateral case. The paper also establishes, for the bilateral case, the efficiency of the incremental version with the shortfall‐from‐due‐care way of defining negligence. Journal: Journal of Economic Policy Reform Pages: 343-359 Issue: 4 Volume: 13 Year: 2010 X-DOI: 10.1080/17487870.2010.523972 File-URL: http://hdl.handle.net/10.1080/17487870.2010.523972 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jecprf:v:13:y:2010:i:4:p:343-359 Template-Type: ReDIF-Article 1.0 Author-Name: Lokendra Kumawat Author-X-Name-First: Lokendra Author-X-Name-Last: Kumawat Title: Modelling changes in seasonality in Indian manufacturing production: an application of the STAR model Abstract: This paper attempts to identify the factors responsible for changes in seasonal patterns in manufacturing production in India. This is done in the framework of the Smooth Transition Autoregressive (STAR) models. We find that the variations in seasonal patterns in manufacturing production are driven by the rate of growth of rainfall. The gradual changes in the structure of the economy have not yet had any discernible effect on the seasonality, although the overall dynamics of this variable have been affected. Journal: Journal of Economic Policy Reform Pages: 361-372 Issue: 4 Volume: 13 Year: 2010 X-DOI: 10.1080/17487870.2010.523975 File-URL: http://hdl.handle.net/10.1080/17487870.2010.523975 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jecprf:v:13:y:2010:i:4:p:361-372 Template-Type: ReDIF-Article 1.0 Author-Name: Ranjan Ku Dash Author-X-Name-First: Ranjan Ku Author-X-Name-Last: Dash Author-Name: Pravakar Sahoo Author-X-Name-First: Pravakar Author-X-Name-Last: Sahoo Title: Economic growth in India: the role of physical and social infrastructure Abstract: We investigate the role of physical and social infrastructure in economic growth in India after controlling for other important variables such as investment, labour force, and trade, using the Two‐Stage Least Squares (TSLS) and Dynamic Ordinary Least Squares (DOLS) techniques, for the period 1970 to 2006. In this context we develop a composite index of physical infrastructure stocks and examine its impact on output. We find that physical and social infrastructures have a significant positive impact on output apart from gross domestic capital formation and international trade. Further, the causality analysis supports the results, revealing unidirectional causality from infrastructure development and human capital to output growth in India. Journal: Journal of Economic Policy Reform Pages: 373-385 Issue: 4 Volume: 13 Year: 2010 X-DOI: 10.1080/17487870.2010.523980 File-URL: http://hdl.handle.net/10.1080/17487870.2010.523980 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jecprf:v:13:y:2010:i:4:p:373-385 Template-Type: ReDIF-Article 1.0 Author-Name: The Editors Title: Statement of retraction Journal: Journal of Economic Policy Reform Pages: 387-387 Issue: 4 Volume: 13 Year: 2010 X-DOI: 10.1080/17487870.2010.533897 File-URL: http://hdl.handle.net/10.1080/17487870.2010.533897 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jecprf:v:13:y:2010:i:4:p:387-387 Template-Type: ReDIF-Article 1.0 Author-Name: Pierre‐Richard Agénor Author-X-Name-First: Pierre‐Richard Author-X-Name-Last: Agénor Author-Name: S. Devrim Yilmaz Author-X-Name-First: S. Devrim Author-X-Name-Last: Yilmaz Title: The tyranny of rules: fiscal discipline, productive spending, and growth in a perfect foresight model Abstract: The performance of alternative fiscal rules is examined in an endogenous growth model. The government spends money on infrastructure, maintenance, and health. Infrastructure affects the production of both commodities and health services. The performance of a balanced budget rule, as well as standard and modified golden rules (including and excluding productive spending) and primary surplus rules are compared numerically. Under a range of plausible parameter configurations, a primary surplus rule that excludes productive spending performs better (in a growth sense, although not necessarily from the perspective of short‐run macro stability) than alternative rules in response to a variety of shocks. Journal: Journal of Economic Policy Reform Pages: 69-99 Issue: 1 Volume: 14 Year: 2011 X-DOI: 10.1080/17487870.2010.503086 File-URL: http://hdl.handle.net/10.1080/17487870.2010.503086 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jecprf:v:14:y:2011:i:1:p:69-99 Template-Type: ReDIF-Article 1.0 Author-Name: Oguzhan Dincer Author-X-Name-First: Oguzhan Author-X-Name-Last: Dincer Author-Name: Fan Wang Author-X-Name-First: Fan Author-X-Name-Last: Wang Title: Ethnic diversity and economic growth in China Abstract: We investigate the effects of ethnic diversity on economic growth in the People’s Republic of China. Based on provincial data from 1982 to 2007, we find a negative relationship between ethnic diversity and economic growth across Chinese provinces supporting existing cross‐country studies such as Alesina et al. (2003). According to our estimations, going from complete ethnic homogeneity to complete ethnic heterogeneity reduces the growth rate between 2 percentage points and 2.5 percentage points in China, depending on the ethnic diversity index used. Journal: Journal of Economic Policy Reform Pages: 1-10 Issue: 1 Volume: 14 Year: 2011 X-DOI: 10.1080/17487870.2011.523985 File-URL: http://hdl.handle.net/10.1080/17487870.2011.523985 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jecprf:v:14:y:2011:i:1:p:1-10 Template-Type: ReDIF-Article 1.0 Author-Name: Miguel Márquez Author-X-Name-First: Miguel Author-X-Name-Last: Márquez Author-Name: Javier Salinas‐Jiménez Author-X-Name-First: Javier Author-X-Name-Last: Salinas‐Jiménez Author-Name: Ma. del Mar Salinas‐Jiménez Author-X-Name-First: Ma. del Mar Author-X-Name-Last: Salinas‐Jiménez Title: Exploring differences in corruption: the role of neighboring countries Abstract: The aim of this paper is to study whether corruption spreads across neighboring countries. Spatial econometric techniques are used to analyze corruption interactions, testing whether the perception of corruption in neighboring countries affect a country’s own corruption once other variables are controlled for. For a given country it is found that corruption varies neither with the behavior of its neighbors (there is no endogenous interaction) nor with their exogenous characteristics (there is no contextual interaction). Corruption is therefore not contagious, but neighboring countries tend to show similar levels of corruption because they face similar characteristics and similar institutional environments. Journal: Journal of Economic Policy Reform Pages: 11-19 Issue: 1 Volume: 14 Year: 2011 X-DOI: 10.1080/17487870.2011.534287 File-URL: http://hdl.handle.net/10.1080/17487870.2011.534287 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jecprf:v:14:y:2011:i:1:p:11-19 Template-Type: ReDIF-Article 1.0 Author-Name: Pablo Arocena Author-X-Name-First: Pablo Author-X-Name-Last: Arocena Author-Name: Leticia Blázquez Author-X-Name-First: Leticia Author-X-Name-Last: Blázquez Author-Name: Emili Grifell‐Tatjé Author-X-Name-First: Emili Author-X-Name-Last: Grifell‐Tatjé Title: Assessing the consequences of restructuring reforms on firms’ performance Abstract: This paper assesses the restructuring of the Spanish electric power sector by analysing the performance of electric companies. To this end, we jointly analyse the creation and decomposition of the economic value generated by them before and after the reform, and its distribution among firms’ stakeholders. Our results show that after the reform (i) the economic value created by productivity has substantially increased; (ii) technical change and change in the degree of vertical integration have been the main drivers of productivity change; (iii) the value transferred to consumers has decreased. Journal: Journal of Economic Policy Reform Pages: 21-39 Issue: 1 Volume: 14 Year: 2011 X-DOI: 10.1080/17487870.2011.538982 File-URL: http://hdl.handle.net/10.1080/17487870.2011.538982 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jecprf:v:14:y:2011:i:1:p:21-39 Template-Type: ReDIF-Article 1.0 Author-Name: Ernesto Crivelli Author-X-Name-First: Ernesto Author-X-Name-Last: Crivelli Title: Subnational fiscal behavior under the expectation of federal bailouts Abstract: This paper analyzes how subnational governments allocate own resources between current spending and infrastructure investment and decide on borrowing under the expectation of federal bailouts. It is assumed that states' borrowing possibilities increase with the expectation of such bailouts because the financial system is willing to fund a higher amount of public investment projects. As a result, state governments engage in an opportunistic behavior: they allocate a higher (lower) than optimal amount of own resources to current spending (infrastructure investment) and over‐borrow. Journal: Journal of Economic Policy Reform Pages: 41-57 Issue: 1 Volume: 14 Year: 2011 X-DOI: 10.1080/17487870.2011.543760 File-URL: http://hdl.handle.net/10.1080/17487870.2011.543760 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jecprf:v:14:y:2011:i:1:p:41-57 Template-Type: ReDIF-Article 1.0 Author-Name: Bryan McCannon Author-X-Name-First: Bryan Author-X-Name-Last: McCannon Title: The distortion of criminal evidence Abstract: Should witnesses truthfully reveal all information or present the evidence in such a way as to support one side of the dispute? The ability of a witness to distort evidence at some cost in support of the prosecution in a criminal case is considered. It is shown that when distorting the evidence is more difficult, the number of convictions and the accuracy of the decisions improve. When distorting evidence is less costly, the jury must set high standards for conviction, which leads to fewer convictions. Journal: Journal of Economic Policy Reform Pages: 59-67 Issue: 1 Volume: 14 Year: 2011 X-DOI: 10.1080/17487870.2011.552941 File-URL: http://hdl.handle.net/10.1080/17487870.2011.552941 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jecprf:v:14:y:2011:i:1:p:59-67 Template-Type: ReDIF-Article 1.0 Author-Name: Ulrich van Suntum Author-X-Name-First: Ulrich Author-X-Name-Last: van Suntum Author-Name: Cordelius Ilgmann Author-X-Name-First: Cordelius Author-X-Name-Last: Ilgmann Title: Global policy challenges in a changing world Journal: Journal of Economic Policy Reform Pages: 101-103 Issue: 2 Volume: 14 Year: 2011 X-DOI: 10.1080/17487870.2011.577644 File-URL: http://hdl.handle.net/10.1080/17487870.2011.577644 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jecprf:v:14:y:2011:i:2:p:101-103 Template-Type: ReDIF-Article 1.0 Author-Name: Geraldine Ryan Author-X-Name-First: Geraldine Author-X-Name-Last: Ryan Author-Name: Edward Shinnick Author-X-Name-First: Edward Author-X-Name-Last: Shinnick Title: Real economic activity leading indicators: should we have paid more attention? Abstract: The ability to predict business cycle activity is an invaluable skill for governments and policy makers alike, especially before an economy enters a downturn. We analyse causality relationships between key leading economic indicators and economic growth for three countries from 1970 to 2010. We find that while many indicators do not help explain current movements in GDP growth, lags of these indicators do. In addition, the direction of the change and the size of the change in the lagged economic indicators are very important in many cases. This is particularly true for housing indicators. Journal: Journal of Economic Policy Reform Pages: 105-125 Issue: 2 Volume: 14 Year: 2011 X-DOI: 10.1080/17487870.2011.577645 File-URL: http://hdl.handle.net/10.1080/17487870.2011.577645 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jecprf:v:14:y:2011:i:2:p:105-125 Template-Type: ReDIF-Article 1.0 Author-Name: Andrew Hughes Hallett Author-X-Name-First: Andrew Author-X-Name-Last: Hughes Hallett Author-Name: Christian R. Richter Author-X-Name-First: Christian R. Author-X-Name-Last: Richter Title: Is there clustering among the Eurozone economies? Evidence from how the EU’s New Member States are converging Abstract: Optimal Currency Area theory stresses the importance of the co-movement of business cycles among Eurozone member states for a successful common currency. In this paper, we show how to decompose economic cycles in a time-frequency framework in order to compare the coherences and phase shifts for Hungary, Poland, Czech Republic, Germany and France. We find that there has been some convergence on the Eurozone economy at short cycle lengths, but little convergence in long cycles. We argue that this shows evidence of divergence in the Eurozone into two groups: a German cluster and the periphery economies. Journal: Journal of Economic Policy Reform Pages: 127-150 Issue: 2 Volume: 14 Year: 2011 X-DOI: 10.1080/17487870.2011.577646 File-URL: http://hdl.handle.net/10.1080/17487870.2011.577646 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jecprf:v:14:y:2011:i:2:p:127-150 Template-Type: ReDIF-Article 1.0 Author-Name: Filip Abraham Author-X-Name-First: Filip Author-X-Name-Last: Abraham Author-Name: Jan Van Hove Author-X-Name-First: Jan Author-X-Name-Last: Van Hove Title: Chinese competition in OECD markets: impact on the export position and export strategy of OECD countries Abstract: China has been rapidly increasing the exports of manufactured products to OECD markets. In this paper we obtain evidence that the rise of China decreases the export market shares of OECD countries in other OECD markets. We also assess strategies of OECD countries to respond to increasing Chinese competition. OECD countries that upgrade the quality of their export goods strengthen their export position. The evidence for a strategy of variety expansion is less convincing. These conclusions hold for total manufacturing trade. At the sectoral level, the impact of variety expansion and quality upgrading appears to be very heterogeneous. Journal: Journal of Economic Policy Reform Pages: 151-170 Issue: 2 Volume: 14 Year: 2011 X-DOI: 10.1080/17487870.2011.577647 File-URL: http://hdl.handle.net/10.1080/17487870.2011.577647 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jecprf:v:14:y:2011:i:2:p:151-170 Template-Type: ReDIF-Article 1.0 Author-Name: d’Artis Kancs Author-X-Name-First: d’Artis Author-X-Name-Last: Kancs Title: Labour migration in the enlarged EU: a new economic geography approach Abstract: This paper studies the impact of migration policy liberalisation on international labour migration in the enlarged European Union (EU) in a structural economic geography approach. The liberalisation of migration policy would induce an additional 1.80–2.98% of the total EU workforce to change their country of location, with most of migrant workers relocating from the East to the West. The average net migration rate is decreasing in the level of integration, suggesting that from an economic point of view no regulatory policy responses are necessary to labour migration in the enlarged EU. Journal: Journal of Economic Policy Reform Pages: 171-188 Issue: 2 Volume: 14 Year: 2011 X-DOI: 10.1080/17487870.2011.577648 File-URL: http://hdl.handle.net/10.1080/17487870.2011.577648 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jecprf:v:14:y:2011:i:2:p:171-188 Template-Type: ReDIF-Article 1.0 Author-Name: Inmaculada Álvarez-Ayuso Author-X-Name-First: Inmaculada Author-X-Name-Last: Álvarez-Ayuso Author-Name: M. Jesús Delgado-Rodríguez Author-X-Name-First: M. Jesús Author-X-Name-Last: Delgado-Rodríguez Author-Name: M. del Mar Salinas-Jiménez Author-X-Name-First: M. del Mar Author-X-Name-Last: Salinas-Jiménez Title: Explaining TFP growth in the European Union at the sector level Abstract: This paper analyses Total Factor Productivity (TFP) growth in the EU for the main sectors of private activity by adopting a production frontier approach. This analysis enables us to examine the determinants of EU sector productivity growth in European countries and the channels through which different economic variables can influence productivity growth, whether by conditioning improvements in efficiency levels or by contributing to technical change. Our results show that all European sectors experienced shifts in their production frontier but need an enhancement of their catching-up capabilities; the importance of the sector structure is also manifest in explaining productivity; and infrastructure and human capital are found to be major determining factors of TFP growth. Journal: Journal of Economic Policy Reform Pages: 189-199 Issue: 3 Volume: 14 Year: 2011 X-DOI: 10.1080/17487870.2011.570088 File-URL: http://hdl.handle.net/10.1080/17487870.2011.570088 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jecprf:v:14:y:2011:i:3:p:189-199 Template-Type: ReDIF-Article 1.0 Author-Name: Vladimír Hlásny Author-X-Name-First: Vladimír Author-X-Name-Last: Hlásny Title: Economic determinants of deregulation in the gas distribution market Abstract: Many state public commissions have deregulated their utility markets. However, evidence of welfare or efficiency improvements under deregulation is ambiguous. It is also unclear why different states adopt consumer choice, price caps, sliding-scale plans, or retain rate-of-return regulation. This study evaluates several economic factors behind deregulation in gas distribution markets using a survey of state commissions. Logistic and hazard models show that utilities’ prices and capacity, and states’ stock of own gas wells, prices of competing fuels and the regulatory climate, help explain the pattern of deregulation. Demonstration effects from surrounding markets also contribute. These factors make the propensity to use price caps versus restructuring vary regionally. Journal: Journal of Economic Policy Reform Pages: 201-213 Issue: 3 Volume: 14 Year: 2011 X-DOI: 10.1080/17487870.2011.570089 File-URL: http://hdl.handle.net/10.1080/17487870.2011.570089 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jecprf:v:14:y:2011:i:3:p:201-213 Template-Type: ReDIF-Article 1.0 Author-Name: Mohammad Alam Author-X-Name-First: Mohammad Author-X-Name-Last: Alam Author-Name: Jeroen Buysse Author-X-Name-First: Jeroen Author-X-Name-Last: Buysse Author-Name: Ismat Begum Author-X-Name-First: Ismat Author-X-Name-Last: Begum Author-Name: Eric Wailes Author-X-Name-First: Eric Author-X-Name-Last: Wailes Author-Name: Guido Van Huylenbroeck Author-X-Name-First: Guido Author-X-Name-Last: Van Huylenbroeck Title: The welfare impact of policy interventions in the foodgrain markets in Bangladesh Abstract: The paper attempts to estimate the welfare impact of different policy interventions in the foodgrain markets in Bangladesh using an economic surplus approach. Over the period of analysis, 1980–2003, the loss in consumer surplus exceeded the gain in producer surplus plus the gain in government revenue. Therefore, the interventions resulted in a deadweight welfare loss for society. In contrast, in the policy of liberalization, the gain in consumer surplus and in government revenue is larger than the loss in producer surplus, producing a net welfare gain to society. Journal: Journal of Economic Policy Reform Pages: 215-225 Issue: 3 Volume: 14 Year: 2011 X-DOI: 10.1080/17487870.2011.570092 File-URL: http://hdl.handle.net/10.1080/17487870.2011.570092 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jecprf:v:14:y:2011:i:3:p:215-225 Template-Type: ReDIF-Article 1.0 Author-Name: Chunping Zhong Author-X-Name-First: Chunping Author-X-Name-Last: Zhong Author-Name: Calum Turvey Author-X-Name-First: Calum Author-X-Name-Last: Turvey Author-Name: Juan Zhang Author-X-Name-First: Juan Author-X-Name-Last: Zhang Author-Name: Changsheng Xu Author-X-Name-First: Changsheng Author-X-Name-Last: Xu Title: Does taxation have real effects on agricultural output? Theory and empirical evidence from China Abstract: China has a long history of taxing agriculture, with special levies on output. Whether farm households are taxed on a lump-sum basis or as a proportion of output is an important issue. This paper develops a theoretical model to understand better the effects of the lump-sum and proportional taxation on agricultural output. It then empirically investigates the predictions using tax and output data on Chinese agriculture. The theoretical model predicts that lump-sum taxation affects only consumption, while proportional taxation simultaneously affects consumption, capital inputs and final output. Although the main tax policy targeted output, our results suggest that taxation had only a modest impact on output since it was effectively applied as lump sum taxation brought about by localized levies and taxes. Journal: Journal of Economic Policy Reform Pages: 227-242 Issue: 3 Volume: 14 Year: 2011 X-DOI: 10.1080/17487870.2011.575105 File-URL: http://hdl.handle.net/10.1080/17487870.2011.575105 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jecprf:v:14:y:2011:i:3:p:227-242 Template-Type: ReDIF-Article 1.0 Author-Name: Apanard Angkinand Author-X-Name-First: Apanard Author-X-Name-Last: Angkinand Author-Name: Eric Chiu Author-X-Name-First: Eric Author-X-Name-Last: Chiu Title: Will institutional reform enhance bilateral trade flows? Analyses from different reform aspects Abstract: This paper examines the effect of various types of institutional reforms in enhancing bilateral trade flows. We examine three types of institutional reforms – democratic political system, legal, and administrative reforms – and distinguish an initial effect from a permanent effect on bilateral trade. Using a panel of 62 countries over 1980–2008, we find that all three types of reforms are important in enhancing bilateral trade flows, but their positive effects are only observed when the reforms are permanent. Our study concludes that permanent improvement in domestic institutions should be an important objective for policy makers to pursue in promoting trade. Journal: Journal of Economic Policy Reform Pages: 243-258 Issue: 3 Volume: 14 Year: 2011 X-DOI: 10.1080/17487870.2011.576485 File-URL: http://hdl.handle.net/10.1080/17487870.2011.576485 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jecprf:v:14:y:2011:i:3:p:243-258 Template-Type: ReDIF-Article 1.0 Author-Name: Diego Martínez Author-X-Name-First: Diego Author-X-Name-Last: Martínez Author-Name: A. Jesús Sánchez-Fuentes Author-X-Name-First: A. Jesús Author-X-Name-Last: Sánchez-Fuentes Title: The optimal policy in the provision of public inputs: to what extent do technology, taxation and preferences matter? Abstract: Public spending policy is currently being redefined in most of the advanced economies, dramatically affecting public investment. This paper studies the sensitivity of the provision of public inputs to changes in the technology, taxation and consumer preferences. We consider a simple model in which the government with recourse to three different tax settings provides firms with certain productive services. We look at several specific cases in which the returns to scale in the production function emerges as a critical issue. Our findings also address the impact of changes in output elasticity, in consumer preferences and in the number of households, on the levels of public input and welfare. Journal: Journal of Economic Policy Reform Pages: 259-271 Issue: 3 Volume: 14 Year: 2011 X-DOI: 10.1080/17487870.2011.581030 File-URL: http://hdl.handle.net/10.1080/17487870.2011.581030 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jecprf:v:14:y:2011:i:3:p:259-271 Template-Type: ReDIF-Article 1.0 Author-Name: Max Groneck Author-X-Name-First: Max Author-X-Name-Last: Groneck Title: The golden rule of public finance and the composition of government expenditures: a growth and welfare analysis Abstract: This paper employs an endogenous growth model to study the growth and welfare effects of the golden rule of public finance. Two versions are compared, whereby government deficits are restricted for the use of public investments. It is shown that the growth effect of the golden rule depends on what kind of expenditure is adjusted to meet debt obligations. A transition from a balanced budget to a golden rule is performed to study welfare. The results indicate that a budget rule with detrimental growth effects can still have positive welfare implications, and vice versa, if the composition of government expenditures and transitional dynamics are taken into account. Journal: Journal of Economic Policy Reform Pages: 273-294 Issue: 4 Volume: 14 Year: 2011 X-DOI: 10.1080/17487870.2011.590328 File-URL: http://hdl.handle.net/10.1080/17487870.2011.590328 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jecprf:v:14:y:2011:i:4:p:273-294 Template-Type: ReDIF-Article 1.0 Author-Name: Yongzheng Liu Author-X-Name-First: Yongzheng Author-X-Name-Last: Liu Author-Name: Jianmei Zhao Author-X-Name-First: Jianmei Author-X-Name-Last: Zhao Title: Intergovernmental fiscal transfers and local tax efforts: evidence from provinces in China Abstract: This paper explores the incentive effects of total central fiscal transfers and its components – tax rebates and equalization grants – on provincial tax efforts in China. Our theoretical model predicts negative impacts on provincial tax efforts from both total fiscal transfers and equalization grants, while the effects of tax rebates are theoretically unclear. Using Chinese provincial panel data from 1995 to 2007, our empirical study provides significant evidence on the theoretical implications. Journal: Journal of Economic Policy Reform Pages: 295-300 Issue: 4 Volume: 14 Year: 2011 X-DOI: 10.1080/17487870.2011.591175 File-URL: http://hdl.handle.net/10.1080/17487870.2011.591175 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jecprf:v:14:y:2011:i:4:p:295-300 Template-Type: ReDIF-Article 1.0 Author-Name: Elissaios Papyrakis Author-X-Name-First: Elissaios Author-X-Name-Last: Papyrakis Title: Resource windfalls, innovation, and growth Abstract: This paper explores the connection between resource abundance and innovation, as a transmission mechanism that can elucidate part of the resource curse hypothesis, i.e. the observed negative impact of resource wealth on income growth. We develop a variation of the Ramsey-Cass-Koopmans model with endogenous growth to explain the phenomenon. In this model, consumers trade off leisure versus consumption, and firms trade off innovation efforts versus manufacturing. We show that an increase in resource income frustrates economic growth in two ways: directly by reducing work effort and indirectly by inducing a smaller proportion of the labor force to engage in innovation. Journal: Journal of Economic Policy Reform Pages: 301-312 Issue: 4 Volume: 14 Year: 2011 X-DOI: 10.1080/17487870.2011.595570 File-URL: http://hdl.handle.net/10.1080/17487870.2011.595570 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jecprf:v:14:y:2011:i:4:p:301-312 Template-Type: ReDIF-Article 1.0 Author-Name: Ke Chen Author-X-Name-First: Ke Author-X-Name-Last: Chen Author-Name: Cheng Cheng Author-X-Name-First: Cheng Author-X-Name-Last: Cheng Author-Name: Shenggang Yang Author-X-Name-First: Shenggang Author-X-Name-Last: Yang Title: Are China’s sovereign credit ratings underestimated? Abstract: We use a comprehensive database of sovereign credit ratings (SCRs) from Moody’s, Standard and Poor’s and Fitch for a cross-section of 120 countries from 1986–2009. Using panel data, we find that GDP per capita, the GDP growth rate and the degree of industrialization positively affect ratings, while the government cash flow deficit, the current account surplus, inflation, the lending minus deposit rate interest spread, the S&P global equity index, and a country’s default history negatively affect the sovereign rating of a country. An ordered probit model suggests that while earlier ratings may have been underestimated, recent Chinese sovereign credit ratings are not. Journal: Journal of Economic Policy Reform Pages: 313-320 Issue: 4 Volume: 14 Year: 2011 X-DOI: 10.1080/17487870.2011.600031 File-URL: http://hdl.handle.net/10.1080/17487870.2011.600031 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jecprf:v:14:y:2011:i:4:p:313-320 Template-Type: ReDIF-Article 1.0 Author-Name: Scott Bradford Author-X-Name-First: Scott Author-X-Name-Last: Bradford Author-Name: Dong-jin Kim Author-X-Name-First: Dong-jin Author-X-Name-Last: Kim Author-Name: Kerk Phillips Author-X-Name-First: Kerk Author-X-Name-Last: Phillips Title: Potential economic reforms in North Korea: a dynamic general equilibrium model Abstract: We use a dynamic general equilibrium model to examine hypothetical market reforms in North Korea. We model partial reform, in which producers choose capital allocations across sectors, with the government still fixing total capital. We also consider two full market reform scenarios. In one, public infrastructure investment remains unchanged, while, in the other, it increases substantially. In all scenarios, we assume a closed economy and a constant military size. Our simulations show little hope for the North Korean economy without boosting infrastructure. Although all of the reforms raise consumption, only significant increases in infrastructure investment bring positive economic growth. Journal: Journal of Economic Policy Reform Pages: 321-332 Issue: 4 Volume: 14 Year: 2011 X-DOI: 10.1080/17487870.2011.600037 File-URL: http://hdl.handle.net/10.1080/17487870.2011.600037 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jecprf:v:14:y:2011:i:4:p:321-332 Template-Type: ReDIF-Article 1.0 Author-Name: Scott Beaulier Author-X-Name-First: Scott Author-X-Name-Last: Beaulier Author-Name: Joshua Hall Author-X-Name-First: Joshua Author-X-Name-Last: Hall Author-Name: Allen Lynch Author-X-Name-First: Allen Author-X-Name-Last: Lynch Title: The impact of political factors on military base closures Abstract: This paper investigates the political economy of military base closure in the United States. The Base Realignment and Closure (BRAC) Act was passed in 1988 in an attempt to insulate base closure and realignment from politic influence. The political pressure to influence the process remains strong, however, given the negative effects base closures can often have on a local economy. Using data from the 2005 BRAC round, we examine whether the current process insulates base closure and realignment from traditional political influences. We find no evidence of political influence on base closings. Journal: Journal of Economic Policy Reform Pages: 333-342 Issue: 4 Volume: 14 Year: 2011 X-DOI: 10.1080/17487870.2011.608536 File-URL: http://hdl.handle.net/10.1080/17487870.2011.608536 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jecprf:v:14:y:2011:i:4:p:333-342 Template-Type: ReDIF-Article 1.0 Author-Name: Mihai Mutascu Author-X-Name-First: Mihai Author-X-Name-Last: Mutascu Title: Taxation and democracy Abstract: Using a panel-model approach, this paper investigates the relationship between the level of taxation and democracy. The dataset covers the period 2002–2008, and includes 51 countries. The study suggests that a significant increase of taxes, without a major negative reaction of taxpayers, can be implemented if the political regime is strongly democratic or, on the contrary, strongly autocratic. Journal: Journal of Economic Policy Reform Pages: 343-348 Issue: 4 Volume: 14 Year: 2011 X-DOI: 10.1080/17487870.2011.635037 File-URL: http://hdl.handle.net/10.1080/17487870.2011.635037 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jecprf:v:14:y:2011:i:4:p:343-348 Template-Type: ReDIF-Article 1.0 Author-Name: Daniel Broby Author-X-Name-First: Daniel Author-X-Name-Last: Broby Title: The regulatory evolution of the post credit crisis fund management industry Abstract: The credit crisis that developed as a result of the problems in the US sub-prime mortgage market has consequences for the future shape of regulation of the fund management industry. The author examines the exposed agency problems, poor risk management, and the lack of liquidity in many fund offerings that have led to a number of new onerous regulations (as distinct from ‘acquired regulations’). The new regulations are changing the industry microstructure. Post credit crisis valuations are 73% of the pre credit crisis five-year levels, implying the markets are evaluating the industry differently in view of the many new challenges that it now faces. Journal: Journal of Economic Policy Reform Pages: 5-11 Issue: 1 Volume: 15 Year: 2012 X-DOI: 10.1080/17487870.2011.642145 File-URL: http://hdl.handle.net/10.1080/17487870.2011.642145 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jecprf:v:15:y:2012:i:1:p:5-11 Template-Type: ReDIF-Article 1.0 Author-Name: Kazem Yavari Author-X-Name-First: Kazem Author-X-Name-Last: Yavari Author-Name: Reza Mohseni Author-X-Name-First: Reza Author-X-Name-Last: Mohseni Title: Trade liberalization and economic growth: a case study of Iran Abstract: We estimate the impact of trade liberalization and physical and human capital accumulation on Iran’s economic growth during the period 1959−2007. Using co-integration techniques and a vector error correction model, we find a unique long-run relationship between economic growth and its major determinants. These determinants include the physical and human capital stock, the labor force, real non-oil exports, and import tariffs. In addition, the short-term error correction dynamics analysis suggests that trade liberalization has a significant long run positive role in dynamic of growth. Our results support the view that the integration of the Iranian economy with the world economy is undoubtedly welfare improving. Journal: Journal of Economic Policy Reform Pages: 13-23 Issue: 1 Volume: 15 Year: 2012 X-DOI: 10.1080/17487870.2011.642579 File-URL: http://hdl.handle.net/10.1080/17487870.2011.642579 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jecprf:v:15:y:2012:i:1:p:13-23 Template-Type: ReDIF-Article 1.0 Author-Name: Hrushikesh Mallick Author-X-Name-First: Hrushikesh Author-X-Name-Last: Mallick Author-Name: Mantu Mahalik Author-X-Name-First: Mantu Author-X-Name-Last: Mahalik Title: Fundamental or speculative factors in the housing markets of emerging economies? Some lessons from China Abstract: Using quarterly data, 1999:Q2–2009:Q3, we empirically examine the key macro determinants of housing prices for China’s residential market. Employing Granger causality and Vector Auto-Regression (VAR) models, we find that there exists strong bivariate causality between house price increases and its determinants. The variance decomposition suggests that speculative factors reflected by past increases in real house price contribute a relatively larger proportion to house price rises relative to fundamental factors. Journal: Journal of Economic Policy Reform Pages: 57-67 Issue: 1 Volume: 15 Year: 2012 X-DOI: 10.1080/17487870.2011.642580 File-URL: http://hdl.handle.net/10.1080/17487870.2011.642580 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jecprf:v:15:y:2012:i:1:p:57-67 Template-Type: ReDIF-Article 1.0 Author-Name: Zhuo Tan Author-X-Name-First: Zhuo Author-X-Name-Last: Tan Author-Name: Shenggang Yang Author-X-Name-First: Shenggang Author-X-Name-Last: Yang Title: Neutralization in China: evidence from the balance sheet of the People’s Bank of China Abstract: We evaluate China’s neutralization policy by monthly estimations based on the central bank balance sheet from 1999:6 to 2011:6. Our results suggest that China effectively neutralizes 66% of the change of net foreign assets under a pegged currency regime. Consequently, a purchase of one yuan of net foreign assets leads to an effective increase of 1.4 yuan in the money supply, rather than 4 yuan in the absence of neutralization. In the face of rapid growth of foreign reserves, neutralization in China is becoming increasingly difficult, consistent with Mundell’s hypothesis. Journal: Journal of Economic Policy Reform Pages: 25-31 Issue: 1 Volume: 15 Year: 2012 X-DOI: 10.1080/17487870.2012.647776 File-URL: http://hdl.handle.net/10.1080/17487870.2012.647776 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jecprf:v:15:y:2012:i:1:p:25-31 Template-Type: ReDIF-Article 1.0 Author-Name: Shintaro Hamanaka Author-X-Name-First: Shintaro Author-X-Name-Last: Hamanaka Title: Whose trade statistics are correct? Multiple mirror comparison techniques: a test case of Cambodia Journal: Journal of Economic Policy Reform Pages: 33-56 Issue: 1 Volume: 15 Year: 2012 X-DOI: 10.1080/17487870.2012.657827 File-URL: http://hdl.handle.net/10.1080/17487870.2012.657827 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jecprf:v:15:y:2012:i:1:p:33-56 Template-Type: ReDIF-Article 1.0 Author-Name: Judith Clifton Author-X-Name-First: Judith Author-X-Name-Last: Clifton Title: Editorial Journal: Journal of Economic Policy Reform Pages: 1-4 Issue: 1 Volume: 15 Year: 2012 X-DOI: 10.1080/17487870.2012.659045 File-URL: http://hdl.handle.net/10.1080/17487870.2012.659045 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jecprf:v:15:y:2012:i:1:p:1-4 Template-Type: ReDIF-Article 1.0 Author-Name: Ching-Lung Chen Author-X-Name-First: Ching-Lung Author-X-Name-Last: Chen Author-Name: Su-Hui Huang Author-X-Name-First: Su-Hui Author-X-Name-Last: Huang Author-Name: Hung-Shu Fan Author-X-Name-First: Hung-Shu Author-X-Name-Last: Fan Title: Complementary association between real activities and accruals-based manipulation in earnings reporting Abstract: Extant studies focus on examining the developed capital markets and reveal mixed results for the association between real activities versus accruals-based earnings management. This study establishes a set of simultaneous equations that captures managers’ behaviors to boost (or suppress) earnings performance to examine whether real activities and discretionary accruals play mutually complement roles in earnings reporting in Taiwan. The two-stage least squares regressions results reveal that the realactivities manipulation comprehensive measure is positively associated with discretionary accruals and supports the complement hypothesis. It suggests that managers jointly and simultaneously use these two tools in strategic earnings reporting decisions. Journal: Journal of Economic Policy Reform Pages: 93-108 Issue: 2 Volume: 15 Year: 2012 X-DOI: 10.1080/17487870.2012.667965 File-URL: http://hdl.handle.net/10.1080/17487870.2012.667965 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jecprf:v:15:y:2012:i:2:p:93-108 Template-Type: ReDIF-Article 1.0 Author-Name: Tarlok Singh Author-X-Name-First: Tarlok Author-X-Name-Last: Singh Title: Does public capital crowd-out or crowd-in private capital in India? Abstract: This study examines the long-run effects of public capital on private capital and tests the null of Granger non-causality between public and private capital in India. Both single-equation and system estimates of the model consistently suggest the long-run crowding-in effects of public capital. The error-correction as well as over-parameterized level-VAR models consistently suggest uni-directional Granger-causality from public to private capital. The support for the significant crowding-in effects of public capital has important implications for the formulation of long-term growth and development strategies. It underlines the need to accelerate public infrastructure to induce the distortions-free and market-driven increases in private capital and to attract the inflow of foreign direct investment. The inflows of foreign capital have witnessed perceptible increases since the beginning of the 1990s. The geographical and sectoral distributions of FDI inflows remain asymmetric and skewed in favor of the select regions and the services industries. The services-sector-led growth needs to be accompanied by the commensurate performance of the goods-producing, agricultural and industrial, sectors so as to sustain the escalated trajectory of economic growth. Journal: Journal of Economic Policy Reform Pages: 109-133 Issue: 2 Volume: 15 Year: 2012 X-DOI: 10.1080/17487870.2012.668767 File-URL: http://hdl.handle.net/10.1080/17487870.2012.668767 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jecprf:v:15:y:2012:i:2:p:109-133 Template-Type: ReDIF-Article 1.0 Author-Name: Valarmathi Pradeep Author-X-Name-First: Valarmathi Author-X-Name-Last: Pradeep Author-Name: Jong-Rong Chen Author-X-Name-First: Jong-Rong Author-X-Name-Last: Chen Title: Measuring productivity growth, efficiency change and technical progress in small scale firms in India during pre and post-reform periods Abstract: This study examines the productivity, efficiency change and technical progress of small manufacturing firms in Coimbatore, India using Data Envelopment Analysis. Since July 1991, major economic policy changes have been made under an economic reforms programme. The new policies have relaxed or removed many government controls on production capacity, imported capital goods, intermediate inputs and technology. These reforms have altered the economic environment of the country. The results reveal that productivity and technical progress was slightly higher in the pre-reform period than in the post-reform period but technical efficiency is greater in the post-reform period. Journal: Journal of Economic Policy Reform Pages: 153-169 Issue: 2 Volume: 15 Year: 2012 X-DOI: 10.1080/17487870.2012.671622 File-URL: http://hdl.handle.net/10.1080/17487870.2012.671622 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jecprf:v:15:y:2012:i:2:p:153-169 Template-Type: ReDIF-Article 1.0 Author-Name: Dae Jin Yi Author-X-Name-First: Dae Author-X-Name-Last: Jin Yi Title: No taxation, no democracy? Taxation, income inequality, and democracy Abstract: Does taxation promote democracy? Revisiting this question, I hypothesize that the effects of taxation on democracy tend to be relatively stronger in unequal societies because higher income inequality can amplify the extent to which citizens dissatisfied with higher levels of taxation want to soak elites. Using event history models to analyze a pooled time-series dataset of regime transitions that cover all countries from 1970 to 2000 if data are applicable, I find empirical evidence that taxation has a conditional impact on democratization, but not on democratic breakdown. According to the theory, higher taxation levels and greater income inequality should tend to promote democracy. Journal: Journal of Economic Policy Reform Pages: 71-92 Issue: 2 Volume: 15 Year: 2012 X-DOI: 10.1080/17487870.2012.672252 File-URL: http://hdl.handle.net/10.1080/17487870.2012.672252 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jecprf:v:15:y:2012:i:2:p:71-92 Template-Type: ReDIF-Article 1.0 Author-Name: Xiaochun Li Author-X-Name-First: Xiaochun Author-X-Name-Last: Li Author-Name: Qin Shen Author-X-Name-First: Qin Author-X-Name-Last: Shen Title: A study on urban private capital and the transfer of labor in the modern agriculture sector Abstract: As urban private capital enters the modern agriculture industry, it divides the agricultural sector into the modern sector and the traditional sector. This article establishes a general equilibrium model to study the economic impact of governmental policies aimed at promoting modern agriculture. The main conclusions of this article are that interest subsidies implemented by the government to promote modern agriculture can reduce the transfer of labor from the rural areas to the cities, but encourage the movement of rural labor to the modern agricultural sector. Conversely, wage rate subsidies for the modern agricultural sector will lead to rises in the urban unemployment rate and a decrease in the quantity of labor in the traditional agricultural sector. Journal: Journal of Economic Policy Reform Pages: 135-152 Issue: 2 Volume: 15 Year: 2012 X-DOI: 10.1080/17487870.2012.672833 File-URL: http://hdl.handle.net/10.1080/17487870.2012.672833 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jecprf:v:15:y:2012:i:2:p:135-152 Template-Type: ReDIF-Article 1.0 Author-Name: Judith Clifton Author-X-Name-First: Judith Author-X-Name-Last: Clifton Title: Something old, something new… new directions for Journal: Journal of Economic Policy Reform Pages: 69-70 Issue: 2 Volume: 15 Year: 2012 X-DOI: 10.1080/17487870.2012.691353 File-URL: http://hdl.handle.net/10.1080/17487870.2012.691353 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jecprf:v:15:y:2012:i:2:p:69-70 Template-Type: ReDIF-Article 1.0 Author-Name: Rajeev Goel Author-X-Name-First: Rajeev Author-X-Name-Last: Goel Title: Business regulation and taxation: effects on cross-country corruption Abstract: This paper adds to the literature on the government-corruption nexus by examining the effects of taxation and various business regulations on cross-country corruption. Regulations considered include the number of procedures and related costs for business startup, licensing and property registrations. Results show that regulation, not taxation, generally positively impacts corruption and the effects of non-monetary regulatory costs are more significant than monetary costs. Findings are generally robust to an alternate corruption measure and to simultaneity between corruption and regulation. Results for ‘standard’ determinants of corruption largely support the literature. Policy implications are discussed. Journal: Journal of Economic Policy Reform Pages: 223-242 Issue: 3 Volume: 15 Year: 2012 X-DOI: 10.1080/17487870.2012.692468 File-URL: http://hdl.handle.net/10.1080/17487870.2012.692468 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jecprf:v:15:y:2012:i:3:p:223-242 Template-Type: ReDIF-Article 1.0 Author-Name: Lein-lein Chen Author-X-Name-First: Lein-lein Author-X-Name-Last: Chen Author-Name: Melvin Jameson Author-X-Name-First: Melvin Author-X-Name-Last: Jameson Title: Rents, party cadres and the proliferation of Special Economic Zones in China Abstract: China’s more than ten thousand economic zones, while similar in some respects to those found elsewhere, exhibit various unique features. In most developing economies, zones are the responsibility of the central administration and are designed to promote exports or foreign investment. In contrast, the Chinese zones are built and run by local governments and need not involve foreign investment or exports. We argue that the Chinese zone policy is best understood as part of a drive for economic reform, and that its unique features serve to defuse potential resistance from local cadres, whose interests are not served by reform. Journal: Journal of Economic Policy Reform Pages: 207-221 Issue: 3 Volume: 15 Year: 2012 X-DOI: 10.1080/17487870.2012.692469 File-URL: http://hdl.handle.net/10.1080/17487870.2012.692469 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jecprf:v:15:y:2012:i:3:p:207-221 Template-Type: ReDIF-Article 1.0 Author-Name: Yawen Hwang Author-X-Name-First: Yawen Author-X-Name-Last: Hwang Author-Name: Shihchieh Chang Author-X-Name-First: Shihchieh Author-X-Name-Last: Chang Author-Name: Shuhan Yang Author-X-Name-First: Shuhan Author-X-Name-Last: Yang Title: Measuring the consequences of pension reform applying liquidation and longevity considerations Abstract: Around the world, the longer life expectancy of the population raises important questions for policy-makers about how citizens can maintain their basic standard of living after retirement. Pension schemes tend to be the major source of retirement incomes, at least, in the developed world. Facing this aging problem, the Taiwanese government offered persons insured under the Labor Insurance Pension Scheme the choice of whether or not to annuitize their retirement benefits from January 1, 2009. Following the implementation of this pension program, the insured may now select the old-age one-time benefit or a monthly pension benefit when they retire. The puzzle is that very few people would choose to annuitize their wealth in practice. This is contrary to the suggestions made by the financial literature. In this study, we apply the liquidity premium and the implied longevity yield (ILY) to compare the old-age one-time benefit with the monthly pension benefit. The results demonstrate that the ILY minus the risk-free rate is greater than the liquidity premium in most scenarios and these findings encourage the insured to choose the old-age pension benefit. This result is consistent with the financial literature. Moreover, we find that those insured with the lowest insurance salary and fewer years of coverage earn the highest ILY. This shows that the program has been designed with the purpose of wealth re-distribution. Journal: Journal of Economic Policy Reform Pages: 243-255 Issue: 3 Volume: 15 Year: 2012 X-DOI: 10.1080/17487870.2012.696417 File-URL: http://hdl.handle.net/10.1080/17487870.2012.696417 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jecprf:v:15:y:2012:i:3:p:243-255 Template-Type: ReDIF-Article 1.0 Author-Name: Justin Lin Author-X-Name-First: Justin Author-X-Name-Last: Lin Author-Name: David Rosenblatt Author-X-Name-First: David Author-X-Name-Last: Rosenblatt Title: Shifting patterns of economic growth and rethinking development Abstract: This paper provides an historical overview of both the evolution of the economic performance of the developing world and the evolution of economic thought on development policy. The twentieth century was broadly characterized by divergence between high-income countries and the developing world, with only a limited number (less than 10% of the economies in the world) managing to progress out of lower or middle-income status to high-income status. The last decade witnessed a sharp reversal from a pattern of divergence to convergence – particularly for a set of large middle-income countries. The latter phenomenon was also driven by increasing economic ties among developing countries and, on the intellectual scale, increased knowledge generation and sharing among the developing countries. Re-thinking development policy implies confronting these realities: twentieth century economic divergence, the experience of the handful of success stories, and the recent rise of the multi-polar growth world. This paper provides descriptive data and a literature survey to document these trends. Journal: Journal of Economic Policy Reform Pages: 171-194 Issue: 3 Volume: 15 Year: 2012 X-DOI: 10.1080/17487870.2012.700565 File-URL: http://hdl.handle.net/10.1080/17487870.2012.700565 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jecprf:v:15:y:2012:i:3:p:171-194 Template-Type: ReDIF-Article 1.0 Author-Name: Cihan Aktas Author-X-Name-First: Cihan Author-X-Name-Last: Aktas Author-Name: Orcan Cortuk Author-X-Name-First: Orcan Author-X-Name-Last: Cortuk Title: Turkey’s experience with the global crisis: restructuring policies within a financial stability framework Abstract: The challenges threatening financial stability have grown owing to the increasing uncertainties in the global markets since the financial crisis. This has led policymakers to grant a larger role to financial stability in their implementations. Accordingly, the Turkish Central Bank modified its existing inflation targeting framework by explicitly highlighting the role of financial stability rather than imposing capital controls solely. Required reserves, interest rate corridor and liquidity management policies are utilized in addition to the one-week repo rate. We conclude that Turkey’s new policy mix has so far been effective at discouraging capital short-term inflows, representing an alternative approach to capital controls. Journal: Journal of Economic Policy Reform Pages: 195-205 Issue: 3 Volume: 15 Year: 2012 X-DOI: 10.1080/17487870.2012.702202 File-URL: http://hdl.handle.net/10.1080/17487870.2012.702202 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jecprf:v:15:y:2012:i:3:p:195-205 Template-Type: ReDIF-Article 1.0 Author-Name: Qiang Zhang Author-X-Name-First: Qiang Author-X-Name-Last: Zhang Author-Name: Min Wu Author-X-Name-First: Min Author-X-Name-Last: Wu Title: Jointly issued notes: a financial instrument to improve SME credit worthiness in China Abstract: A financial instrument to improve the credit worthiness of small and medium enterprises (SMEs), i.e. Jointly Issued Notes (JINs), improves the average credit rating of SMEs by eight notches, from BBB to AA+, thus reducing borrowing cost by 298 basis points. This research note describes the various kinds of JINs, and then analyzes their effect on the credit worthiness of SMEs. We conclude that the JINs successfully facilitate access to credit at lower rates in China. Journal: Journal of Economic Policy Reform Pages: 257-262 Issue: 3 Volume: 15 Year: 2012 X-DOI: 10.1080/17487870.2012.716986 File-URL: http://hdl.handle.net/10.1080/17487870.2012.716986 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jecprf:v:15:y:2012:i:3:p:257-262 Template-Type: ReDIF-Article 1.0 Author-Name: Malini Tantri Author-X-Name-First: Malini Author-X-Name-Last: Tantri Title: Did the metamorphosis from Export Processing Zones to Special Economic Zones improve the efficiency of trade enclaves in India? Abstract: In this paper, the efficiency of seven conventional Special Economic Zones in India is analyzed, by adopting a stochastic production frontier technique, for the period between 1986–1987 and 2007–2008.Results indicate that although the efficiency scores of these enclaves have improved over the years, specifically with the introduction of the SEZ policy (2000–2001), it is far below the threshold level as identified in the literature. Besides, one can also observe a discrepancy emerging between better export earning zones and efficient zones. On the determinants side, policy intervention and large geographical area, accompanied by clustering of units, are found to have impacted the efficiency scores of these enclaves positively. Journal: Journal of Economic Policy Reform Pages: 321-337 Issue: 4 Volume: 15 Year: 2012 X-DOI: 10.1080/17487870.2012.696420 File-URL: http://hdl.handle.net/10.1080/17487870.2012.696420 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jecprf:v:15:y:2012:i:4:p:321-337 Template-Type: ReDIF-Article 1.0 Author-Name: George Philippidis Author-X-Name-First: George Author-X-Name-Last: Philippidis Author-Name: Elisavet Kitou Author-X-Name-First: Elisavet Author-X-Name-Last: Kitou Title: Quantifying opportunities and threats: examining the Canada–EU trade negotiations Abstract: This study examines the impacts of a Canadian–EU preferential trade agreement. A carefully designed contemporary baseline scenario and additional HS6 tariff offer data are incorporated to establish the degree of ambition of the negotiations whilst assessing the sectoral trade opportunities and threats facing both partners. Initial tariff offer real income gains are estimated at 76% of full liberalisation in both regions, rising to 91% (Canada) and 84% (EU) under the second tariff offer. Given higher levels of applied tariff protection, potentially significant impacts are measured in dairy, meat and wheat sectors. Trade diversion losses on third countries are negligible. Journal: Journal of Economic Policy Reform Pages: 301-320 Issue: 4 Volume: 15 Year: 2012 X-DOI: 10.1080/17487870.2012.717001 File-URL: http://hdl.handle.net/10.1080/17487870.2012.717001 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jecprf:v:15:y:2012:i:4:p:301-320 Template-Type: ReDIF-Article 1.0 Author-Name: Chiara Del Bo Author-X-Name-First: Chiara Author-X-Name-Last: Del Bo Author-Name: Massimo Florio Author-X-Name-First: Massimo Author-X-Name-Last: Florio Title: Public enterprises, planning and policy adoption: three welfare propositions Abstract: Despite widespread privatizations over the last three decades, public enterprises, as production units under government control, are still present in several countries and sectors. While the academic and political debate on the costs and benefits of privatization is vast, a focus on the rationale for public enterprises, from the standpoint of Social Cost Benefit Analysis, is missing. This paper aims at filling this gap and provides a normative discussion on public enterprises in a general equilibrium setting. The conditions under which public provision may be beneficial and the metrics for evaluating polices and projects under (a)symmetric information and (non)benevolent governments are presented in three welfare propositions. The main policy message points to the overall quality of institutions as a necessary pre-condition for socially desirable public enterprises. A sound institutional environment provides policy-makers with the correct incentives to design and implement meaningful policies even if public administrators adopt sub-optimal plans. Institutions should constrain self-interested policy-makers from disrupting the key welfare signals for policy adoption as well as for project appraisal, while bias in management is a relatively less important concern. Journal: Journal of Economic Policy Reform Pages: 263-279 Issue: 4 Volume: 15 Year: 2012 X-DOI: 10.1080/17487870.2012.722846 File-URL: http://hdl.handle.net/10.1080/17487870.2012.722846 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jecprf:v:15:y:2012:i:4:p:263-279 Template-Type: ReDIF-Article 1.0 Author-Name: Qichun He Author-X-Name-First: Qichun Author-X-Name-Last: He Title: Financial deregulation, credit allocation across sectors, and economic growth: evidence from China Abstract: This paper investigates whether financial deregulation causes economic growth through financial development. Financial development is measured by two channels: (1) changes in the allocation of credit across sectors, and (2) changes in savings and investment rates. We measure financial deregulation in China at the provincial level from 1981 to 1998. Our results suggest that financial reform causes economic growth in China. Further, its effect largely comes through the reallocation of credit across sectors, rather than changes in savings and investment rates. Journal: Journal of Economic Policy Reform Pages: 281-299 Issue: 4 Volume: 15 Year: 2012 X-DOI: 10.1080/17487870.2012.731801 File-URL: http://hdl.handle.net/10.1080/17487870.2012.731801 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jecprf:v:15:y:2012:i:4:p:281-299 Template-Type: ReDIF-Article 1.0 Author-Name: Bilin Neyapti Author-X-Name-First: Bilin Author-X-Name-Last: Neyapti Title: Monetary institutions and inflation performance: cross-country evidence Abstract: This paper presents an empirical investigation of the effectiveness of the institutional frameworks of monetary policy in achieving and maintaining price stability. The institutional frameworks considered are central bank independence (CBI), inflation targeting (IT), currency boards (CB) and monetary unions (MU). Against the vast literature that argues for the price stabilizing effects of each of these institutions, the empirical evidence presented here suggests that countries that have adopted the IT and CB regimes have, on average, been associated with lower inflation rates than others during the past decade. This finding is robust to various control variables, while governance appears to be a substitute to formal mechanisms. Journal: Journal of Economic Policy Reform Pages: 339-354 Issue: 4 Volume: 15 Year: 2012 X-DOI: 10.1080/17487870.2012.731805 File-URL: http://hdl.handle.net/10.1080/17487870.2012.731805 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jecprf:v:15:y:2012:i:4:p:339-354 Template-Type: ReDIF-Article 1.0 Author-Name: Lucia Quaglia Author-X-Name-First: Lucia Author-X-Name-Last: Quaglia Title: Financial regulation and supervision in the European Union after the crisis Abstract: The global financial crisis challenged the existing architecture for financial services regulation and supervision in the European Union (EU). This article first examines the new pieces of legislation that were issued by the EU in the wake of the crisis, as well as substantial revisions of existing EU legislation. Second, it conducts an overall assessment of the reforms implemented and highlights some open issues that were underscored by the crisis and that were only partially addressed afterward. It is argued that the framework for financial regulation and supervision in the EU after the crisis is still poorly equipped to deal with (or to prevent) future financial crises mainly because of the political constraints encountered during the reform process. One of the most important lessons to be drawn is that political factors are as important as (if not more important than) economic factors in shaping financial services regulation and supervision in the EU (and, arguably, elsewhere). Journal: Journal of Economic Policy Reform Pages: 17-30 Issue: 1 Volume: 16 Year: 2013 X-DOI: 10.1080/17487870.2012.755790 File-URL: http://hdl.handle.net/10.1080/17487870.2012.755790 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jecprf:v:16:y:2013:i:1:p:17-30 Template-Type: ReDIF-Article 1.0 Author-Name: Orcan Cortuk Author-X-Name-First: Orcan Author-X-Name-Last: Cortuk Title: A disaggregated approach to the determination of government spending multipliers Abstract: This paper contributes to the debate on the effects of fiscal stimuli by showing that the impact of government expenditure depends on its composition. Government spending is not homogeneous and its effects on economic variables vary depending on its type. Comparing the effects of three types of government spending (investment, wage and non-wage components of consumption), it is concluded that government investment shocks are not the most effective spending shocks in boosting output, contrary to common opinion. Instead, the wage component government consumption has the biggest impact, whereas the non-wage component government consumption has the least. This variation stems mainly from the effects on (private) consumption. Journal: Journal of Economic Policy Reform Pages: 31-45 Issue: 1 Volume: 16 Year: 2013 X-DOI: 10.1080/17487870.2012.755812 File-URL: http://hdl.handle.net/10.1080/17487870.2012.755812 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jecprf:v:16:y:2013:i:1:p:31-45 Template-Type: ReDIF-Article 1.0 Author-Name: Daniel Albalate del Sol Author-X-Name-First: Daniel Albalate del Author-X-Name-Last: Sol Title: The institutional, economic and social determinants of local government transparency Abstract: Interest in transparency is increasing worldwide. Literature on their determinants is evolving but is still in early stages. So far, it has typically focused on national governments while neglecting local governments. This paper examines the economic, social, and institutional determinants of local government transparency in Spain. We broaden the traditional fiscal focus by including corporate, social, contracting, and planning transparency indexes. Our results indicate that large municipalities and left-wing mayors report better transparency indexes; while the worst results are presented by provincial capitals, touristic cities and mayors with absolute majority. The analysis of specific transparency categories generally shows the consistent impact of these determinants. Journal: Journal of Economic Policy Reform Pages: 90-107 Issue: 1 Volume: 16 Year: 2013 X-DOI: 10.1080/17487870.2012.759422 File-URL: http://hdl.handle.net/10.1080/17487870.2012.759422 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jecprf:v:16:y:2013:i:1:p:90-107 Template-Type: ReDIF-Article 1.0 Author-Name: Bogdan Dima Author-X-Name-First: Bogdan Author-X-Name-Last: Dima Author-Name: Stefana Maria Dima Author-X-Name-First: Stefana Maria Author-X-Name-Last: Dima Author-Name: Oana-Ramona Lobont Author-X-Name-First: Oana-Ramona Author-X-Name-Last: Lobont Title: New empirical evidence of the linkages between governance and economic output in the European Union Abstract: This paper uses data for the 27 Member States of the European Union (EU) from 2000 to 2010 to support the thesis that a positive and significant correlation exists between a nation’s quality of governance and its economic output. To achieve this goal, the elements of governance that have been reported by the Worldwide Governance Indicators project are considered. Four individual indicators for the quality of policies and institutions and a global indicator of governance quality are constructed. We estimate that, for our database, a standard deviation shock in these indicators causes changes between 0.03-fold and 0.05-fold in income per capita. Journal: Journal of Economic Policy Reform Pages: 68-89 Issue: 1 Volume: 16 Year: 2013 X-DOI: 10.1080/17487870.2012.759427 File-URL: http://hdl.handle.net/10.1080/17487870.2012.759427 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jecprf:v:16:y:2013:i:1:p:68-89 Template-Type: ReDIF-Article 1.0 Author-Name: Gouranga Das Author-X-Name-First: Gouranga Author-X-Name-Last: Das Title: “Moving” land across borders: spatial shifts in land demand and immiserizing effects Abstract: The rush for land acquisition has attracted considerable attention from the scientific community, although actual research on the topic remains thin. This paper attempts to break new ground by studying the potential effects of land deals in the context of a small open economy subject to exogenous shocks. In particular, it makes three main arguments: first, an increase in world prices of the agro-business sector causes skewed effects in the subsistence sector; second, an attractive premium offered by hosts to lure investors may have immiserizing effects; and third, technological efforts will have favorable effects if host countries adopt policies to revitalize agriculture. Journal: Journal of Economic Policy Reform Pages: 46-67 Issue: 1 Volume: 16 Year: 2013 X-DOI: 10.1080/17487870.2012.761459 File-URL: http://hdl.handle.net/10.1080/17487870.2012.761459 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jecprf:v:16:y:2013:i:1:p:46-67 Template-Type: ReDIF-Article 1.0 Author-Name: Graham Bird Author-X-Name-First: Graham Author-X-Name-Last: Bird Author-Name: Alex Mandilaras Author-X-Name-First: Alex Author-X-Name-Last: Mandilaras Title: Fiscal imbalances and output crises in Europe: will the fiscal compact help or hinder? Abstract: The eurozone crisis has involved sharp output declines and has generated much discussion about the appropriate design of macroeconomic policy both in terms of dealing with the contemporary situation and minimising the risks of future crises. Much of the debate surrounding the crisis has focused on fiscal policy. All but two member states of the European Union have signed a draft treaty, the ‘fiscal compact’, that seeks to eliminate structural fiscal deficits. This paper examines the relationship between fiscal balances and output shortfalls amongst the eurozone countries allowing for other factors. In the light of the findings it critically assesses the fiscal compact. Journal: Journal of Economic Policy Reform Pages: 1-16 Issue: 1 Volume: 16 Year: 2013 X-DOI: 10.1080/17487870.2013.765081 File-URL: http://hdl.handle.net/10.1080/17487870.2013.765081 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jecprf:v:16:y:2013:i:1:p:1-16 Template-Type: ReDIF-Article 1.0 Author-Name: Kuan Min Wang Author-X-Name-First: Kuan Min Author-X-Name-Last: Wang Title: Interest rate pass-through and illiquidity shocks in the US Abstract: This study examines the US interest rate pass-through mechanism and considers the illiquidity shocks upon retail interest rate correlations caused by financial crises between 1986 and 2011. We estimate a bi-variable EGARCH model using a dynamic conditional correlation model developed by Engle (2002) in order to analyze how asymmetric monetary policy influences interest rate pass-through. We test the risks to the dynamic condition and changes in the correlation coefficient. The main empirical results are as follows. First, the long-run interest rate pass-through mechanism is unstable in the US. Second, expected monetary policy impulses are greater than the unexpected ones in the short-run. Finally, according to the one-step and N-step forecast tests, the illiquidity shocks caused by financial crises demonstrate a significant change in retail interest rate risks, but not in correlations between retail interest rates. We conclude that when the interest rate pass-through mechanism is unstable, banks may stop helping each other and will not provide loans to firms and consumers, thereby exhausting the capital of all economic systems. The characteristics of illiquidity enter into the interest rate pass-through mechanism; therefore, the relationship between illiquidity and the interest rate pass-through needs to be investigated. Journal: Journal of Economic Policy Reform Pages: 198-217 Issue: 2 Volume: 16 Year: 2013 X-DOI: 10.1080/17487870.2013.770261 File-URL: http://hdl.handle.net/10.1080/17487870.2013.770261 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jecprf:v:16:y:2013:i:2:p:198-217 Template-Type: ReDIF-Article 1.0 Author-Name: Štefan Bojnec Author-X-Name-First: Štefan Author-X-Name-Last: Bojnec Title: Rural labour market policies in Croatia, FYR of Macedonia and Turkey Abstract: Considerable differences are found among countries regarding the importance of the agricultural labour force, between rural and urban labour, and in poverty and living conditions in rural areas. Declines in the agricultural labour force and rural population are foreseen for each of the countries, but with significant variations between them. Showing different patterns over time, labour market developments in the sector and in rural areas have been shaped by the overall labour market institutions, conditions and factors in each country, such as the legal basis, educational attainment and migration flows, and the presence of non-agricultural activities in rural areas. Journal: Journal of Economic Policy Reform Pages: 179-197 Issue: 2 Volume: 16 Year: 2013 X-DOI: 10.1080/17487870.2013.780972 File-URL: http://hdl.handle.net/10.1080/17487870.2013.780972 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jecprf:v:16:y:2013:i:2:p:179-197 Template-Type: ReDIF-Article 1.0 Author-Name: Germà Bel Author-X-Name-First: Germà Author-X-Name-Last: Bel Author-Name: Xavier Fageda Author-X-Name-First: Xavier Author-X-Name-Last: Fageda Title: Market power, competition and post-privatization regulation: Evidence from changes in regulation of European airports Abstract: This paper conducts an empirical analysis of the relationship between privatization, competition, and regulation drawing on data from a wide sample of European airports. Privatization policies may involve a shift in the way governments are able to intervene in markets, while airports – unlike network infrastructures – are subject to mixed degrees of competition and monopoly characteristics. In this regard, our main hypothesis is that the impact of privatization on regulatory reform will be dependent on the competition scenario that prevails in each airport. We provide empirical evidence that the stringency of regulatory reform is related to the level of existing competition. Large airports, with substantial market power, tend to be subject to highly prescriptive regulation and airports that have nearby competing airports tend to be subject to less prescriptive regulation. Journal: Journal of Economic Policy Reform Pages: 123-141 Issue: 2 Volume: 16 Year: 2013 X-DOI: 10.1080/17487870.2013.781338 File-URL: http://hdl.handle.net/10.1080/17487870.2013.781338 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jecprf:v:16:y:2013:i:2:p:123-141 Template-Type: ReDIF-Article 1.0 Author-Name: Matti Siemiatycki Author-X-Name-First: Matti Author-X-Name-Last: Siemiatycki Title: Riding the wave: explaining cycles in urban mega-project development Abstract: This paper examines the complex mix of technological innovation, economics, social networks, ideologies and interest groups that spur the diffusion of certain new mega-project approaches at punctuated moments in time. Situating mega-projects within a context of long-range economic cycles and competitive urban entrepreneurialism on a global scale, cyclical patterns of innovation are identified, where successful early trendsetter mega-projects have stimulated interest groups to promote similar projects in their own cities. The paper concludes that the global diffusion of mega-project innovations are driven by the political and policy lure of achieving major tangible benefits, as well as the potential to convey a powerful set of symbolic messages. Journal: Journal of Economic Policy Reform Pages: 160-178 Issue: 2 Volume: 16 Year: 2013 X-DOI: 10.1080/17487870.2013.797904 File-URL: http://hdl.handle.net/10.1080/17487870.2013.797904 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jecprf:v:16:y:2013:i:2:p:160-178 Template-Type: ReDIF-Article 1.0 Author-Name: Justin Lin Author-X-Name-First: Justin Author-X-Name-Last: Lin Author-Name: Xifang Sun Author-X-Name-First: Xifang Author-X-Name-Last: Sun Author-Name: Ye Jiang Author-X-Name-First: Ye Author-X-Name-Last: Jiang Title: Endowment, industrial structure, and appropriate financial structure: a new structural economics perspective Abstract: This paper proposes a demand-side theory on the appropriate financial structure for an economy. As argued in the new structural economics, the factor endowment structure in an economy determines its optimal industrial structure. Firms operating in different industries and applying different technologies have different characteristics in firm size and risk. Since various financial institutions have their own strengths and weaknesses in providing financial services, there is an appropriate financial structure for the economy at its particular development level. As the economy develops, the appropriate financial structure for the economy evolves correspondingly. The basic patterns of actual financial structure in the real world are consistent with these predictions. Journal: Journal of Economic Policy Reform Pages: 109-122 Issue: 2 Volume: 16 Year: 2013 X-DOI: 10.1080/17487870.2013.799035 File-URL: http://hdl.handle.net/10.1080/17487870.2013.799035 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jecprf:v:16:y:2013:i:2:p:109-122 Template-Type: ReDIF-Article 1.0 Author-Name: Clara Cardone-Riportella Author-X-Name-First: Clara Author-X-Name-Last: Cardone-Riportella Author-Name: Antonio Trujillo-Ponce Author-X-Name-First: Antonio Author-X-Name-Last: Trujillo-Ponce Author-Name: Anahí Briozzo Author-X-Name-First: Anahí Author-X-Name-Last: Briozzo Title: Analyzing the role of mutual guarantee societies on bank capital requirements for small and medium-sized enterprises Abstract: This paper analyzes the impact of the guarantee provided by mutual guarantee societies (MGSs) on the risk premium that banks should charge for small- and medium-sized enterprise (SME) loans under the new Basel Capital Accords (Basel II and III). We also examine whether the foreseeable decrease in the theoretical credit risk premium would be compensated by the cost of the MGS guarantee. To do so, we develop a rating system for SMEs that uses a large sample of Spanish firms over the period from 2005 to 2009. We find that the final effect of the guarantee on the SME risk premium depends on the values taken by the credit variables of the MGS (essentially, the probability of default). Journal: Journal of Economic Policy Reform Pages: 142-159 Issue: 2 Volume: 16 Year: 2013 X-DOI: 10.1080/17487870.2013.801317 File-URL: http://hdl.handle.net/10.1080/17487870.2013.801317 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jecprf:v:16:y:2013:i:2:p:142-159 Template-Type: ReDIF-Article 1.0 Author-Name: Hasan Altiok Author-X-Name-First: Hasan Author-X-Name-Last: Altiok Author-Name: Glenn Jenkins Author-X-Name-First: Glenn Author-X-Name-Last: Jenkins Title: Social security generosity, budgetary deficits and reforms in North Cyprus Abstract: This paper estimates the fiscal burden of the historical pay-as-you-go (PAYGO) Social Insurance Pension System in North Cyprus and analyzes the appropriateness of the 2008 reforms that introduced the new Social Security Pension System. Estimates are made of the system deficit. To bring the magnitude of the unfunded cost of the pension system down to a sustainable level, major parametric reforms will need to be made to the system. These include increasing the age of retirement, increasing the rate of contributions, changing the method of indexing of pension benefits and decreasing the theoretical replacement rate of the pension benefits. Journal: Journal of Economic Policy Reform Pages: 218-235 Issue: 2 Volume: 16 Year: 2013 X-DOI: 10.1080/17487870.2013.802473 File-URL: http://hdl.handle.net/10.1080/17487870.2013.802473 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jecprf:v:16:y:2013:i:2:p:218-235 Template-Type: ReDIF-Article 1.0 Author-Name: Roy Mersland Author-X-Name-First: Roy Author-X-Name-Last: Mersland Author-Name: Joachim Thøgersen Author-X-Name-First: Joachim Author-X-Name-Last: Thøgersen Title: Stimulating economic growth in the least developed countries: direct cash transfers for the retired via mobile phones Abstract: The result of current aid policies is that only a small percentage of foreign aid reaches the poorest of the poor in the least developed countries. Current trends of urbanisation and self-reliance place elderly people in an increasingly difficult situation. This paper aims to stimulate debate by introducing an alternative mechanism for foreign aid. With the help of an economic model, we demonstrate how direct cash transfers to elderly people can spur economic growth. Targeting all elderly people above a certain age minimises selection costs and removes perverse incentives. The use of new mobile phone technologies reduces transaction costs and makes our proposed modality feasible including in the least developed countries with low functioning governments. Journal: Journal of Economic Policy Reform Pages: 259-271 Issue: 3 Volume: 16 Year: 2013 Month: 9 X-DOI: 10.1080/17487870.2013.799905 File-URL: http://hdl.handle.net/10.1080/17487870.2013.799905 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jecprf:v:16:y:2013:i:3:p:259-271 Template-Type: ReDIF-Article 1.0 Author-Name: Eberechukwu Uneze Author-X-Name-First: Eberechukwu Author-X-Name-Last: Uneze Title: The relation between capital formation and economic growth: evidence from sub-Saharan African countries Abstract: This paper examines the causal relationship between capital formation and economic growth in Sub-Saharan African countries using recent panel cointegration and causality testing techniques. We find that causality is bi-directional, suggesting that higher economic growth leads to higher capital formation and that in turn, increases in capital formation results in higher economic growth. These results hold irrespective of whether capital formation is measured with private fixed capital formation or by gross capital formation. Journal: Journal of Economic Policy Reform Pages: 272-286 Issue: 3 Volume: 16 Year: 2013 Month: 9 X-DOI: 10.1080/17487870.2013.799916 File-URL: http://hdl.handle.net/10.1080/17487870.2013.799916 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jecprf:v:16:y:2013:i:3:p:272-286 Template-Type: ReDIF-Article 1.0 Author-Name: Anthony J. Makin Author-X-Name-First: Anthony J. Author-X-Name-Last: Makin Title: The policy (in)effectiveness of government spending in a dependent economy Abstract: This paper analyses the policy effectiveness of government spending in a two-sector open economy whose output and expenditure is comprised of tradables and non-tradables. This framework reveals that government spending on either tradables or, more normally, on non-tradables widens the external deficit, yet how the real exchange rate behaves depends, in the first instance, on in which sector the public spending occurs. It also shows that, irrespective of where government spending falls, there appears to be no significant short run boost to overall output and hence employment a priori, although empirically actual impact would depend on the elasticities of tradable and non-tradable output with respect to the real exchange rate. Furthermore, fiscal stimulus is shown to be unambiguously ineffective if deemed unsustainable by foreign lenders, or implemented under a fixed exchange rate regime with limited capital mobility. Journal: Journal of Economic Policy Reform Pages: 287-301 Issue: 3 Volume: 16 Year: 2013 Month: 9 X-DOI: 10.1080/17487870.2013.812937 File-URL: http://hdl.handle.net/10.1080/17487870.2013.812937 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jecprf:v:16:y:2013:i:3:p:287-301 Template-Type: ReDIF-Article 1.0 Author-Name: José Cuesta Author-X-Name-First: José Author-X-Name-Last: Cuesta Author-Name: Ana Abras Author-X-Name-First: Ana Author-X-Name-Last: Abras Title: Education and equal opportunities among Liberian children Abstract: This paper expands the analysis of equal opportunities by connecting traditional benefit incidence analysis of public spending with the human opportunity index, a distribution sensitive measure of access to public services. It also develops ex-ante micro-simulations to determine the cost of equalizing educational opportunities. This technique is applied to Liberia, a country devastated by civil war with serious educational enrollment gaps and policies highly dependent on international aid. Results from simulated increases in teachers’ salaries, elimination of fee and non-fee costs and targeted public educational spending on rural schools all point to very modest redistributive effects but distinctive patterns of winners and losers among Liberian children. Journal: Journal of Economic Policy Reform Pages: 237-258 Issue: 3 Volume: 16 Year: 2013 Month: 9 X-DOI: 10.1080/17487870.2013.816631 File-URL: http://hdl.handle.net/10.1080/17487870.2013.816631 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jecprf:v:16:y:2013:i:3:p:237-258 Template-Type: ReDIF-Article 1.0 Author-Name: Xiaochun Li Author-X-Name-First: Xiaochun Author-X-Name-Last: Li Author-Name: Qin Shen Author-X-Name-First: Qin Author-X-Name-Last: Shen Author-Name: Chunlei Gu Author-X-Name-First: Chunlei Author-X-Name-Last: Gu Author-Name: Meng Ni Author-X-Name-First: Meng Author-X-Name-Last: Ni Title: Analyzing the effect of advanced agriculture development policy Abstract: This paper broadens the scope of current theoretical studies, divides rural agriculture into two sectors—advanced and traditional, and takes into consideration the land factor and the urban informal sector. Under the assumption that wages in the advanced agricultural sector are higher than in the traditional agricultural sector, this paper analyzes the effect of policies to promote advanced agricultural development with the comparative static method. The main conclusions of this paper are: wage subsidization of the advanced agricultural sector, in addition to having the same economic impact as interest subsidies on the advanced agricultural sector, could also increase the land employment in the advanced agricultural sector and reduce that in the traditional agricultural sector. Therefore, the effect of wage subsidizing policies is stronger than that of interest subsidies, while land rent subsidies for the advanced agricultural sector have the same economic effect as wage subsidies. Journal: Journal of Economic Policy Reform Pages: 349-367 Issue: 4 Volume: 16 Year: 2013 Month: 12 X-DOI: 10.1080/17487870.2013.812516 File-URL: http://hdl.handle.net/10.1080/17487870.2013.812516 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jecprf:v:16:y:2013:i:4:p:349-367 Template-Type: ReDIF-Article 1.0 Author-Name: Bas van Aarle Author-X-Name-First: Bas Author-X-Name-Last: van Aarle Title: Structural reforms and fiscal adjustments: policy options for the euro area Abstract: This paper analyses the effects of structural reform and fiscal consolidation policies in the Euro Area using a stylized new-Keynesian model. A number of issues are focused upon: (i) the modelling and effects of fiscal consolidation and structural reforms, and (ii) evaluation of alternative reform and consolidation scenarios, including their joint implementation. Journal: Journal of Economic Policy Reform Pages: 320-335 Issue: 4 Volume: 16 Year: 2013 Month: 12 X-DOI: 10.1080/17487870.2013.827909 File-URL: http://hdl.handle.net/10.1080/17487870.2013.827909 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jecprf:v:16:y:2013:i:4:p:320-335 Template-Type: ReDIF-Article 1.0 Author-Name: Saibal Kar Author-X-Name-First: Saibal Author-X-Name-Last: Kar Title: Recession, terms of trade, and immigrants Abstract: The current literature does not adequately analyze how economic crisis affects employment of immigrants in host countries. It is generally believed that immigrants lose jobs and return home during recession. We show that recession may instead help relatively unskilled immigrants when it leads to terms-of-trade improvement in the host country, and when the unskilled sector is protected by minimum wage regulations. We also derive the condition under which the income gap between natives and immigrants falls. Journal: Journal of Economic Policy Reform Pages: 368-379 Issue: 4 Volume: 16 Year: 2013 Month: 12 X-DOI: 10.1080/17487870.2013.828612 File-URL: http://hdl.handle.net/10.1080/17487870.2013.828612 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jecprf:v:16:y:2013:i:4:p:368-379 Template-Type: ReDIF-Article 1.0 Author-Name: Mildred E. Warner Author-X-Name-First: Mildred E. Author-X-Name-Last: Warner Title: Private finance for public goods: social impact bonds Abstract: Social impact bonds (SIBs) attract private investment to social programs by paying a market rate of return if predefined outcome targets are met. SIBs monetize benefits of social interventions and tie pay to performance, limiting governmental control once the contract is designed. Despite policy enthusiasm across the globe, SIBs have failed to attract private market investors without substantial additional guarantees. SIBs raise questions about government’s ability to ensure broader public values. Using literature on contracting, performance management, and public private partnerships, this exploratory analysis focuses on institutional design, transaction costs, and performance measurement, outlining the opportunities and concerns SIBs present. Journal: Journal of Economic Policy Reform Pages: 303-319 Issue: 4 Volume: 16 Year: 2013 Month: 12 X-DOI: 10.1080/17487870.2013.835727 File-URL: http://hdl.handle.net/10.1080/17487870.2013.835727 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jecprf:v:16:y:2013:i:4:p:303-319 Template-Type: ReDIF-Article 1.0 Author-Name: Eduardo Cuenca García Author-X-Name-First: Eduardo Cuenca Author-X-Name-Last: García Author-Name: Margarita Navarro Pabsdorf Author-X-Name-First: Margarita Author-X-Name-Last: Navarro Pabsdorf Author-Name: Estrella Gómez Herrera Author-X-Name-First: Estrella Author-X-Name-Last: Gómez Herrera Title: The gravity model analysis: an application on MERCOSUR trade flows Abstract: This paper explores the determinants of bilateral trade flows between Mercosur countries. To this aim, a gravity model is applied to annual bilateral exports between 75 countries in 1980–2008. The model is augmented with variables that are relevant in determining the volume and direction of international trade using two alternative estimation methods; pooled ordinary least squares and panel fixed effects. The results reveal that the influence of the agreement on trade has been positive but moderate. As a whole, Mercosur has had positive effects, and this agreement can be reinforced with the deepening of their relationships and the entry of new members. Journal: Journal of Economic Policy Reform Pages: 336-348 Issue: 4 Volume: 16 Year: 2013 Month: 12 X-DOI: 10.1080/17487870.2013.846857 File-URL: http://hdl.handle.net/10.1080/17487870.2013.846857 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jecprf:v:16:y:2013:i:4:p:336-348 Template-Type: ReDIF-Article 1.0 Author-Name: The Editors Title: Editorial Board Journal: Journal of Economic Policy Reform Pages: ebi-ebi Issue: 4 Volume: 16 Year: 2013 Month: 12 X-DOI: 10.1080/17487870.2013.861137 File-URL: http://hdl.handle.net/10.1080/17487870.2013.861137 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jecprf:v:16:y:2013:i:4:p:ebi-ebi Template-Type: ReDIF-Article 1.0 Author-Name: Abbas Khandan Author-X-Name-First: Abbas Author-X-Name-Last: Khandan Author-Name: Masoud Nili Author-X-Name-First: Masoud Author-X-Name-Last: Nili Title: Government interventions and the size of the informal economy. The case of Iran (1971–2007) Abstract: Literature on the informal economy can mainly be divided into two different contrasting theories. According to the dual labor market theory (DLM), which considers the informal economy as a spare sector providing jobs for formally unemployed resources, unpleasant economic situations force people to act informally. Legalists, on the other hand, blame government interventions such as minimum wages or price control policies for pushing rent-seeking firms toward the shadows. This study using an Error-correction Multi-Indicators Multi-Causes (EMIMIC) model, a systematic method consisting of structural and measurement equations, shows that these two theories are complementary rather than substitutes for one another. While long-term trends are explained by legalists, DLM theory is also suitable for explaining short term changes. Iran’s economy in the period 1971–2007, which was characterized by government interventions, is chosen for this purpose. These interventions are measured by Principal Component Analysis. Finally, an index of the size of Iran’s informal economy is also reported. Journal: Journal of Economic Policy Reform Pages: 71-90 Issue: 1 Volume: 17 Year: 2014 Month: 1 X-DOI: 10.1080/17487870.2013.780396 File-URL: http://hdl.handle.net/10.1080/17487870.2013.780396 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jecprf:v:17:y:2014:i:1:p:71-90 Template-Type: ReDIF-Article 1.0 Author-Name: Carlos A. Carrasco Author-X-Name-First: Carlos A. Author-X-Name-Last: Carrasco Author-Name: Jesus Ferreiro Author-X-Name-First: Jesus Author-X-Name-Last: Ferreiro Title: Latin American inflation differentials with USA inflation: does Inflation Targeting make a difference? Abstract: The objective of the paper is to analyse whether the use of Inflation Targeting (IT) has had an impact on the process of convergence of inflation rates between Latin American countries and the United States. The analysis is made using non-habitual convergence tests. Some implications arise from our analysis. First, IT countries have lower inflation than countries with different monetary strategies. Second, the disinflationary process has been widespread, taking place in Latin America later than in developed countries. Finally, countries with other monetary policy strategies have also reduced the levels and dispersion of their inflation rates. Journal: Journal of Economic Policy Reform Pages: 13-32 Issue: 1 Volume: 17 Year: 2014 Month: 1 X-DOI: 10.1080/17487870.2013.787794 File-URL: http://hdl.handle.net/10.1080/17487870.2013.787794 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jecprf:v:17:y:2014:i:1:p:13-32 Template-Type: ReDIF-Article 1.0 Author-Name: Aymen Ben Rejeb Author-X-Name-First: Aymen Author-X-Name-Last: Ben Rejeb Author-Name: Adel Boughrara Author-X-Name-First: Adel Author-X-Name-Last: Boughrara Title: The relationship between financial liberalization and stock market volatility: the mediating role of financial crises Abstract: This paper aims at comparing the effects of financial liberalization on emerging stock markets’ volatility at normal times to the ones in periods of financial crises. To this purpose, a treatment effects model for 13 emerging economies is estimated over January 1986 to December 2008. Three types of financial crises are considered, i.e. banking, currency and twin crises. It has been found that financial liberalization does not lead to excessive volatility in emerging markets and that volatility decreases gradually along with financial liberalization effect on the probability of crises. Moreover, volatility reduction has been found to depend necessarily on several internal characteristics. Journal: Journal of Economic Policy Reform Pages: 46-70 Issue: 1 Volume: 17 Year: 2014 Month: 1 X-DOI: 10.1080/17487870.2013.827967 File-URL: http://hdl.handle.net/10.1080/17487870.2013.827967 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jecprf:v:17:y:2014:i:1:p:46-70 Template-Type: ReDIF-Article 1.0 Author-Name: Hassan Fereidouni Gholipour Author-X-Name-First: Hassan Fereidouni Author-X-Name-Last: Gholipour Author-Name: Usama Al-mulali Author-X-Name-First: Usama Author-X-Name-Last: Al-mulali Author-Name: Abdul Hakim Mohammed Author-X-Name-First: Abdul Hakim Author-X-Name-Last: Mohammed Title: Foreign investments in real estate, economic growth and property prices: evidence from OECD countries Abstract: The last two decades have witnessed a growth in foreign direct investments (FDI) in the real estate sector in most of the Organization for Economic Co-Operation and Development (OECD) countries. It is argued that FDI in the real estate sector may improve economic growth in recipient economies. On the other hand, property prices have increased considerably in OECD countries in recent years and some argue that FDI in real estate is one of the driving forces of high property prices in these countries. The purpose of this study is to analyze the interrelationship between FDI in the real estate sector, economic growth, and property prices while controlling for interest rate and inflation. We use observations from a set of OECD countries for the period between 1995 and 2008. The dynamic interrelationship is analyzed by applying a panel cointegration technique. Our empirical results show that FDI in real estate do not cause property price appreciations and also do not contribute to economic growth in OECD countries in the short run and the long run. Journal: Journal of Economic Policy Reform Pages: 33-45 Issue: 1 Volume: 17 Year: 2014 Month: 1 X-DOI: 10.1080/17487870.2013.828613 File-URL: http://hdl.handle.net/10.1080/17487870.2013.828613 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jecprf:v:17:y:2014:i:1:p:33-45 Template-Type: ReDIF-Article 1.0 Author-Name: Makram El-Shagi Author-X-Name-First: Makram Author-X-Name-Last: El-Shagi Author-Name: Sebastian Giesen Author-X-Name-First: Sebastian Author-X-Name-Last: Giesen Title: A note on the hidden risk of inflation Abstract: The continued expansionary policy of the Federal Reserve gives rise to speculation whether the Fed will be able to maintain price stability in the coming decades. Most of the scientific work relating money to prices relies on broad monetary aggregates (i.e. M2 for the United States). In our paper, we argue that this view falls short. The historically unique monetary expansion has not yet fully reached M2. Using a cointegration approach, we aim to show the hidden risks for the future development of M2 and correspondingly prices. In a simulation analysis we show that even if the multiplier remains substantially below its pre-crisis level, M2 will exceed its current growth path with a probability of 95%. Journal: Journal of Economic Policy Reform Pages: 91-97 Issue: 1 Volume: 17 Year: 2014 Month: 1 X-DOI: 10.1080/17487870.2013.848054 File-URL: http://hdl.handle.net/10.1080/17487870.2013.848054 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jecprf:v:17:y:2014:i:1:p:91-97 Template-Type: ReDIF-Article 1.0 Author-Name: Xiaoming Xu Author-X-Name-First: Xiaoming Author-X-Name-Last: Xu Author-Name: Yanyang Yan Author-X-Name-First: Yanyang Author-X-Name-Last: Yan Title: Does government investment crowd out private investment in China? Abstract: This paper asks whether government investment “crowds out” or “crowds in” private investment in China. We divide government capital expenditures into two types: (1) investment that serves to provide public goods and infrastructure, and (2) investment in private industry and commerce. The results of structured vector auto-regressive analysis suggest that government investment in public goods in China “crowds in” private investment significantly, while government investment in private goods, industry and commerce, mainly through state-owned enterprises, “crowds out” private investment significantly. Journal: Journal of Economic Policy Reform Pages: 1-12 Issue: 1 Volume: 17 Year: 2014 Month: 1 X-DOI: 10.1080/17487870.2013.866897 File-URL: http://hdl.handle.net/10.1080/17487870.2013.866897 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jecprf:v:17:y:2014:i:1:p:1-12 Template-Type: ReDIF-Article 1.0 Author-Name: Erasmus L. Owusu Author-X-Name-First: Erasmus L. Author-X-Name-Last: Owusu Author-Name: Nicholas M. Odhiambo Author-X-Name-First: Nicholas M. Author-X-Name-Last: Odhiambo Title: Financial liberalisation and economic growth in Nigeria: an ARDL-bounds testing approach Abstract: Employing the Autoregressive Distributed Lag (ARDL)-Bounds testing approach, and using GDP – excluding the contributions from oil and gas, as well as the financial services sector – as the growth indicator between 1969 and 2008, the paper establishes a long-run relationship between economic growth and financial liberalisation, which is represented by an index. This index is calculated by using Principal Component Analysis (PCA). The paper finds that financial liberalisation policies have a positive and significant effect on economic growth in Nigeria – both in the short run and in the long run. The study, therefore, recommends that appropriate financial liberalisation policies should be pursued in Nigeria, in order to foster economic growth. However, considering the fact that financial markets are prone to market failures, the study cautions against adopting a laissez-faire approach to financial reforms. Journal: Journal of Economic Policy Reform Pages: 164-177 Issue: 2 Volume: 17 Year: 2014 Month: 4 X-DOI: 10.1080/17487870.2013.787803 File-URL: http://hdl.handle.net/10.1080/17487870.2013.787803 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jecprf:v:17:y:2014:i:2:p:164-177 Template-Type: ReDIF-Article 1.0 Author-Name: Shih- Hsu Wang Author-X-Name-First: Shih- Hsu Author-X-Name-Last: Wang Title: Fuzzy evaluations applied in analysis of infrastructure development based on national competitiveness perspectives Abstract: Policy makers often need to determine which key projects should be prioritised for national infrastructure investment. In this light, this research uses the evaluating indicators for infrastructure as found in the World Competitiveness Yearbook and proposes a leading and lagging fuzzy score graphics-based model to achieve the following objectives: a) distinguish the leading and lagging degree of each indicator more accurately; b) assist policy makers to find out the strongest and the (relatively) weakest infrastructure items and c) highlight the key fields of national infrastructure that need improvement. Taiwan is used as a case study to test the viability of the model proposed. We show how this methodology will help policy makers to determine the key issues requiring improvement towards the national infrastructure system. Journal: Journal of Economic Policy Reform Pages: 178-200 Issue: 2 Volume: 17 Year: 2014 Month: 4 X-DOI: 10.1080/17487870.2013.802543 File-URL: http://hdl.handle.net/10.1080/17487870.2013.802543 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jecprf:v:17:y:2014:i:2:p:178-200 Template-Type: ReDIF-Article 1.0 Author-Name: Sanjaya Acharya Author-X-Name-First: Sanjaya Author-X-Name-Last: Acharya Title: Trade liberalisation in fixed and flexible exchange rate regimes: a CGE analysis for Nepal Abstract: This paper uses a computable general equilibrium model applied to social accounting matrix database to assess the macroeconomic and distributional impacts of trade with and without exchange rate (EXR) liberalisation in a small, developing and transition economy of Nepal. We implement trade liberalisation simulations under two scenarios: fixed EXR but endogenous foreign savings and flexible EXR but exogenous foreign savings. The second scenario is again subdivided into two parts – higher foreign savings as per the inference of the first scenario, and the constant foreign savings. We conclude that the economy undergoes contraction if import, export and exchange rate liberalisations are all implemented simultaneously. However, if currency appreciation and higher foreign saving inflow are controlled, the overall growth impact is still positive, but additional policy measures are necessary to make the impacts pro-poor. Journal: Journal of Economic Policy Reform Pages: 129-148 Issue: 2 Volume: 17 Year: 2014 Month: 4 X-DOI: 10.1080/17487870.2013.843896 File-URL: http://hdl.handle.net/10.1080/17487870.2013.843896 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jecprf:v:17:y:2014:i:2:p:129-148 Template-Type: ReDIF-Article 1.0 Author-Name: Shu-Hen Chiang Author-X-Name-First: Shu-Hen Author-X-Name-Last: Chiang Title: The dilemma of “Twin Cities”: is the suburban dependence hypothesis applicable? Abstract: The question of whether or not public investment and financial aid should be massively concentrated in a specified central city associated with a rising suburb has provoked a great deal of public controversy. The purpose here is to analyze the interaction between a central city and the surrounding suburban area based on employment and population, which is widely cited in “the Chicken and the Egg” problem. The results of our examination of Taipei City and its suburb reveal that Taipei-City’s employment as the engine of the metropolitan economy fully supports the suburban dependence hypothesis and hence the provision of more financial resources in Taipei City is beneficial to the overall metropolitan area, including its suburban area. However, our concern is that the recent policy decision regarding the appointment of Taipei County as another first-tier city, rather than merging it into a united metropolitan government, will further worsen the economic and political conflicts between “Twin Cities” and eventually reduce metropolitan competitiveness on the basis of New Regionalism. Journal: Journal of Economic Policy Reform Pages: 149-163 Issue: 2 Volume: 17 Year: 2014 Month: 4 X-DOI: 10.1080/17487870.2014.889566 File-URL: http://hdl.handle.net/10.1080/17487870.2014.889566 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jecprf:v:17:y:2014:i:2:p:149-163 Template-Type: ReDIF-Article 1.0 Author-Name: Mariarosaria Agostino Author-X-Name-First: Mariarosaria Author-X-Name-Last: Agostino Author-Name: Francesco Trivieri Author-X-Name-First: Francesco Author-X-Name-Last: Trivieri Title: World Bank trade loans and export performance of recipient countries Abstract: Since 1980 several developing countries have received World Bank structural loans, aimed at opening their economy to international trade. By estimating a gravity equation on a panel of 180 countries, observed from 1962 to 2010, we investigate whether the Bank’s programs have affected the export performance of beneficiaries in the subsequent years. According to our results, trade loans have been ineffective in the shorter run while, in the longer, they appear to have hindered the export performance of recipient countries. The Bank’s new trade policy approach, however, seems to have some potential for inverting the negative influence that we have detected. Journal: Journal of Economic Policy Reform Pages: 99-128 Issue: 2 Volume: 17 Year: 2014 Month: 4 X-DOI: 10.1080/17487870.2014.894912 File-URL: http://hdl.handle.net/10.1080/17487870.2014.894912 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jecprf:v:17:y:2014:i:2:p:99-128 Template-Type: ReDIF-Article 1.0 Author-Name: Sonja Grönblom Author-X-Name-First: Sonja Author-X-Name-Last: Grönblom Author-Name: Johan Willner Author-X-Name-First: Johan Author-X-Name-Last: Willner Title: Organisational form and individual motivation: public ownership, privatisation and fat cats Abstract: We add potential intrinsic motivation to an agency model that is applied on public ownership and privatisation. Conventional agency theory suggests private ownership to be superior if pay under public ownership is not performance-related, but the ranking is otherwise reversed. However, we predict that motivation crowding out (MCO) can cause performance differences to go either way in both cases. Fat-cat salaries occur if public ownership with intrinsic motivation and a fixed wage is followed by privatisation with MCO, performance-related pay and a lower effort. The analysis also identifies factors that affect the performance of a given type of organisation. Journal: Journal of Economic Policy Reform Pages: 267-284 Issue: 3 Volume: 17 Year: 2014 Month: 7 X-DOI: 10.1080/17487870.2014.883923 File-URL: http://hdl.handle.net/10.1080/17487870.2014.883923 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jecprf:v:17:y:2014:i:3:p:267-284 Template-Type: ReDIF-Article 1.0 Author-Name: Luc Bernier Author-X-Name-First: Luc Author-X-Name-Last: Bernier Title: Public enterprises as policy instruments: the importance of public entrepreneurship Abstract: Public enterprises are policy instruments that are “rediscovered”. In parallel, a separate scientific literature exists on entrepreneurship in the public sector but has not focused on public enterprises. This article suggests that a new perspective linking both streams of research could lead to an improvement in the understanding of the role as instruments of economic policy that public enterprises could play, in particular in the new context emerging after 2008. The paper advocates that the focus of research should not be on the governance of these institutions or the particularities of ownership but on public entrepreneurship. Journal: Journal of Economic Policy Reform Pages: 253-266 Issue: 3 Volume: 17 Year: 2014 Month: 7 X-DOI: 10.1080/17487870.2014.909312 File-URL: http://hdl.handle.net/10.1080/17487870.2014.909312 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jecprf:v:17:y:2014:i:3:p:253-266 Template-Type: ReDIF-Article 1.0 Author-Name: Pier Alda Ferrari Author-X-Name-First: Pier Alda Author-X-Name-Last: Ferrari Author-Name: Giancarlo Manzi Author-X-Name-First: Giancarlo Author-X-Name-Last: Manzi Title: Citizens evaluate public services: a critical overview of statistical methods for analysing user satisfaction Abstract: Public enterprises may be unaware of their performance in providing services. In situations where citizens cannot switch to other providers or reduce the use of the service, the evaluation of users’ satisfaction becomes a very important topic. At the same time, this is a tricky task, given the particular nature of this variable. Appropriate statistical methods to assess and explain the level of satisfaction are useful tools to face these issues. In this paper, we analyse some of these methods and their potential in giving advice to public managers to improve citizens’ satisfaction. Journal: Journal of Economic Policy Reform Pages: 236-252 Issue: 3 Volume: 17 Year: 2014 Month: 7 X-DOI: 10.1080/17487870.2014.909313 File-URL: http://hdl.handle.net/10.1080/17487870.2014.909313 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jecprf:v:17:y:2014:i:3:p:236-252 Template-Type: ReDIF-Article 1.0 Author-Name: Jane Lethbridge Author-X-Name-First: Jane Author-X-Name-Last: Lethbridge Title: Public enterprises in the healthcare sector – a case study of Queen Elizabeth Hospital, Greenwich, England Abstract: This article responds to a call for more studies of public enterprises with a case study of a public healthcare enterprise, the Queen Elizabeth Hospital (QEH), in Greenwich, England. The QEH was the first hospital to be placed “in administration” since the NHS was founded in 1948. The QEH is a Private Finance Initiative (PFI) hospital. The impact on the QEH, as a PFI hospital, of changes in legislation and bureaucracy and new arrangements for NHS marketisation are examined. The path to being declared an “unsustainable provider” is outlined, with a critique of the recommendations for the merger of the QEH with another local hospital. Journal: Journal of Economic Policy Reform Pages: 224-235 Issue: 3 Volume: 17 Year: 2014 Month: 7 X-DOI: 10.1080/17487870.2014.909314 File-URL: http://hdl.handle.net/10.1080/17487870.2014.909314 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jecprf:v:17:y:2014:i:3:p:224-235 Template-Type: ReDIF-Article 1.0 Author-Name: Dorothea Greiling Author-X-Name-First: Dorothea Author-X-Name-Last: Greiling Author-Name: Birgit Grüb Author-X-Name-First: Birgit Author-X-Name-Last: Grüb Title: Sustainability reporting in Austrian and German local public enterprises Abstract: Since the liberalisation of markets during the 1990s, the pressure on public sector entities to demonstrate their performance in financial and non-financial terms has increased. Compared to the private sector, accountability expectations and obligations are higher for public enterprises due to public ownership and objectives associated with the public mission. While there is a vast body of literature on public accountability in general, a research gap exists when it comes to linking the general debate of public accountability to sustainability reporting practices of public enterprises. Thus, the paper addresses the research questions about the performance of reporting practices of public enterprises with respect to public accountability and about the state of the art of sustainability reporting of public enterprises in Germany and Austria with respect to accountability. Therefore, this paper combines two research domains, social and environmental accounting research and the accountability of public enterprises. The paper reports the results of a survey, analysing the reporting practices of German and Austrian local public entities in particular. Annual reports and, if available, sustainability reports from 103 Austrian and German cities were examined. Journal: Journal of Economic Policy Reform Pages: 209-223 Issue: 3 Volume: 17 Year: 2014 Month: 7 X-DOI: 10.1080/17487870.2014.909315 File-URL: http://hdl.handle.net/10.1080/17487870.2014.909315 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jecprf:v:17:y:2014:i:3:p:209-223 Template-Type: ReDIF-Article 1.0 Author-Name: Massimo Florio Author-X-Name-First: Massimo Author-X-Name-Last: Florio Title: Contemporary public enterprises: innovation, accountability, governance Abstract: Public enterprises (PE) are important players in the global economic arena. Recent empirical evidence confirms that more than 10% of the giant multinationals are government owned; that European PE successfully compete with their private counterparts in network industries such as electricity, gas and telecommunications; and that worldwide PE are found on both sides of the market for corporate control, i.e. they are not just targets of privatization, but also acquirers of private and public firms. In this context, three research themes emerge and are represented by papers in this special issue of the Journal of Economic Policy Reform: entrepreneurship and managerial motivation in PE; measurement of users’ satisfaction and accountability; relations of PE with regulators and governments. Journal: Journal of Economic Policy Reform Pages: 201-208 Issue: 3 Volume: 17 Year: 2014 Month: 7 X-DOI: 10.1080/17487870.2014.913823 File-URL: http://hdl.handle.net/10.1080/17487870.2014.913823 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jecprf:v:17:y:2014:i:3:p:201-208 Template-Type: ReDIF-Article 1.0 Author-Name: The Editors Title: Erratum Journal: Journal of Economic Policy Reform Pages: (i)-(i) Issue: 3 Volume: 17 Year: 2014 Month: 7 X-DOI: 10.1080/17487870.2014.947747 File-URL: http://hdl.handle.net/10.1080/17487870.2014.947747 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jecprf:v:17:y:2014:i:3:p:(i)-(i) Template-Type: ReDIF-Article 1.0 Author-Name: Roman Raab Author-X-Name-First: Roman Author-X-Name-Last: Raab Author-Name: Brenda Gannon Author-X-Name-First: Brenda Author-X-Name-Last: Gannon Title: Diversity of labor supply incentives and retirement: evidence from Ireland Abstract: This paper gives a first-time assessment of the interaction between retirement programs (public and occupational) and labor force behavior of older people in Ireland. Workers planning retirement face a trade-off between earnings from continued work and benefit payments from income security programs. We simulate retirement incentives embedded in these programs. Retirement pathways typical for Ireland uncover different patterns of the incentives; these patterns correspond to observed retirement behavior. A major source of variation relates to the coverage by occupational pensions. Journal: Journal of Economic Policy Reform Pages: 303-321 Issue: 4 Volume: 17 Year: 2014 Month: 10 X-DOI: 10.1080/17487870.2014.912582 File-URL: http://hdl.handle.net/10.1080/17487870.2014.912582 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jecprf:v:17:y:2014:i:4:p:303-321 Template-Type: ReDIF-Article 1.0 Author-Name: Jing You Author-X-Name-First: Jing Author-X-Name-Last: You Title: Poverty dynamics in rural China revisited: do assets matter? Abstract: This paper uses an asset-based approach to examine poverty dynamics in rural China over the period 1989–2006. The analysis documents a significant structural component in the poverty dynamics of households. The lack of profitable agricultural asset accumulation plays an unneglectable role in causing households to be trapped in persistent poverty. The escape from poverty is increasingly dominated by stochastic upward mobility rather than by structural movement in terms of asset accumulation. This could threaten the prospect of poverty reduction in rural China. It is argued that future reform and policy-making should pay more attention to building households’ asset base. Journal: Journal of Economic Policy Reform Pages: 322-340 Issue: 4 Volume: 17 Year: 2014 Month: 10 X-DOI: 10.1080/17487870.2014.920705 File-URL: http://hdl.handle.net/10.1080/17487870.2014.920705 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jecprf:v:17:y:2014:i:4:p:322-340 Template-Type: ReDIF-Article 1.0 Author-Name: Zelal Aktaş Author-X-Name-First: Zelal Author-X-Name-Last: Aktaş Author-Name: Altan Aldan Author-X-Name-First: Altan Author-X-Name-Last: Aldan Author-Name: M. Utku Özmen Author-X-Name-First: M. Utku Author-X-Name-Last: Özmen Title: Import surveillance and over-invoicing imports: the case of Turkey Abstract: Turkey has been implementing import surveillance measures. A possible impact of that is the over-invoicing of imports to avoid surveillance procedures, as goods whose prices are under a predefined reference undergo surveillance. We extend mirror statistics methodology with panel data techniques using highly disaggregated data in order to test for such an impact. Our findings show that import figures of Turkey are inflated by about 2 billion USD in 2011, due to over-reporting induced by surveillance. This might also be the source of systematically positive net errors and omissions item in the balance of payments during the sample period. Journal: Journal of Economic Policy Reform Pages: 360-373 Issue: 4 Volume: 17 Year: 2014 Month: 10 X-DOI: 10.1080/17487870.2014.929004 File-URL: http://hdl.handle.net/10.1080/17487870.2014.929004 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jecprf:v:17:y:2014:i:4:p:360-373 Template-Type: ReDIF-Article 1.0 Author-Name: Tsai-Yuan Huang Author-X-Name-First: Tsai-Yuan Author-X-Name-Last: Huang Author-Name: Po-Chin Wu Author-X-Name-First: Po-Chin Author-X-Name-Last: Wu Author-Name: Ching-Wen Yan Author-X-Name-First: Ching-Wen Author-X-Name-Last: Yan Title: Revisiting the redistribution effects of intergovernmental fiscal transfers: evidence from Taiwan Abstract: This paper employs a panel of 23 local governments in Taiwan over 1998–2010 to re-estimate the redistribution effects of intergovernmental fiscal transfers by considering a self-financing resources of local government as the transition variable in panel smooth transition regression models. Empirical results show that the income (or tax revenues) redistribution effects of fiscal transfer policies are nonlinear and vary with time and across local governments. The grants from central government can improve income and tax revenues distribution of local governments; however, the centrally allotted tax revenues have inverse effects and the total fiscal transfers have ambiguous effects. The total fiscal transfer is a proper policy instrument for improving income redistribution, and the grants for improving tax revenues redistribution. However, high self-financing resources ratios are harmful for these redistribution effects. Journal: Journal of Economic Policy Reform Pages: 341-359 Issue: 4 Volume: 17 Year: 2014 Month: 10 X-DOI: 10.1080/17487870.2014.947985 File-URL: http://hdl.handle.net/10.1080/17487870.2014.947985 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jecprf:v:17:y:2014:i:4:p:341-359 Template-Type: ReDIF-Article 1.0 Author-Name: Monika Halan Author-X-Name-First: Monika Author-X-Name-Last: Halan Author-Name: Renuka Sane Author-X-Name-First: Renuka Author-X-Name-Last: Sane Author-Name: Susan Thomas Author-X-Name-First: Susan Author-X-Name-Last: Thomas Title: The case of the missing billions: estimating losses to customers due to mis-sold life insurance policies Abstract: Regulation of retail finance has been the subject of policy interventions in several countries, including India. Much of the regulatory change in India has been carried out with little support of empirical evidence. This paper is motivated by questions of the evidence of losses due to mis-sales of financial products. It constructs two measures of the loss to customers due to mis-selling of life insurance policies. The first is calculated using the value of lapsed policies, and the second uses the persistence of premium payments. Both arrive at estimates of around USD 28 billion lost between 2004 and 2011. Journal: Journal of Economic Policy Reform Pages: 285-302 Issue: 4 Volume: 17 Year: 2014 Month: 10 X-DOI: 10.1080/17487870.2014.971797 File-URL: http://hdl.handle.net/10.1080/17487870.2014.971797 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jecprf:v:17:y:2014:i:4:p:285-302 Template-Type: ReDIF-Article 1.0 Author-Name: The Editors Title: Editorial Board Journal: Journal of Economic Policy Reform Pages: eb1-eb1 Issue: 4 Volume: 17 Year: 2014 Month: 10 X-DOI: 10.1080/17487870.2014.988941 File-URL: http://hdl.handle.net/10.1080/17487870.2014.988941 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jecprf:v:17:y:2014:i:4:p:eb1-eb1 Template-Type: ReDIF-Article 1.0 Author-Name: Rashmi Umesh Arora Author-X-Name-First: Rashmi Umesh Author-X-Name-Last: Arora Author-Name: Shyama Ratnasiri Author-X-Name-First: Shyama Author-X-Name-Last: Ratnasiri Title: Economic reforms, growth and well-being: evidence from India Abstract: This study examined economic well-being of sub-national units in India since the economic reforms. For this purpose, the study constructed well-being index for 17 major states of India for the period 1981–2011 based on five broad dimensions. Our results showed that the economic well-being of states has declined since the reforms. The interstate disparities have increased and the states (except Punjab and West Bengal) which performed well prior to the reforms continued to perform well in the post-reform years too. In addition, our regression results for the high well-being and low well-being states revealed that the reforms have benefited more developed high well-being states, rather than low well-being states. While human capital was found significantly and positively related to per capita incomes in both groups of the states, financial development was positively related in high well-being states, but a negative association was visible in the low well-being states. Journal: Journal of Economic Policy Reform Pages: 16-33 Issue: 1 Volume: 18 Year: 2015 Month: 1 X-DOI: 10.1080/17487870.2014.920706 File-URL: http://hdl.handle.net/10.1080/17487870.2014.920706 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jecprf:v:18:y:2015:i:1:p:16-33 Template-Type: ReDIF-Article 1.0 Author-Name: Elliott Sclar Author-X-Name-First: Elliott Author-X-Name-Last: Sclar Title: The political economics of investment Utopia: public–private partnerships for urban infrastructure finance Abstract: This article explores the policy disconnect between the pursuit of private investment return and the public desire for enhanced social value from public–private partnership (P3) investments in urban infrastructure. Investors view infrastructure finance as an opportunity for relatively safe, high-return investing. But infrastructure-financing architecture to achieve high private returns frequently clashes with financing models that sustain long-term social benefits. The full implications of relational tensions in the structuring of P3s are analyzed. The principal policy conclusion is that, because of these tensions, the use of P3s for this purpose should be restricted. Journal: Journal of Economic Policy Reform Pages: 1-15 Issue: 1 Volume: 18 Year: 2015 Month: 1 X-DOI: 10.1080/17487870.2014.950857 File-URL: http://hdl.handle.net/10.1080/17487870.2014.950857 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jecprf:v:18:y:2015:i:1:p:1-15 Template-Type: ReDIF-Article 1.0 Author-Name: Niclas Berggren Author-X-Name-First: Niclas Author-X-Name-Last: Berggren Author-Name: Andreas Bergh Author-X-Name-First: Andreas Author-X-Name-Last: Bergh Author-Name: Christian Bjørnskov Author-X-Name-First: Christian Author-X-Name-Last: Bjørnskov Title: What matters for growth in Europe? Institutions versus policies, quality versus instability Abstract: We study how the quality and instability of institutions and policies affect economic growth in 35 European countries. While stability entails valuable predictability, instability can reflect reforms that offer positive long-run consequences. We construct measures of quality and instability for a panel of countries for 1984–2009. Results suggest that the quality of policy is growth-promoting. Notably, this positive effect becomes larger the more unstable policies are. The findings suggest that for European countries, the benefits of policy flexibility – due to experimentation and learning or making rent seeking more difficult – dominate the costs of reduced predictability. Journal: Journal of Economic Policy Reform Pages: 69-88 Issue: 1 Volume: 18 Year: 2015 Month: 1 X-DOI: 10.1080/17487870.2014.953159 File-URL: http://hdl.handle.net/10.1080/17487870.2014.953159 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jecprf:v:18:y:2015:i:1:p:69-88 Template-Type: ReDIF-Article 1.0 Author-Name: Xiaojun Li Author-X-Name-First: Xiaojun Author-X-Name-Last: Li Author-Name: Yan Fang Author-X-Name-First: Yan Author-X-Name-Last: Fang Title: Does external shock trigger systemic banking distress? Abstract: Before 2007, many studies claimed that wide-scale banking distress in various countries was preceded and could be predicted by deteriorating macroeconomic indicators such as falling GDP growth rate. However, these researches were mostly based on “event studies” which identified crises too late. By using banking sector asset price data, the paper finds that economies still thrive in the “pre-crisis” period in terms of increasing GDP growth. The slowdown of economy in terms of a fall in GDP growth is generally associated with the post-crisis period coinciding with the bubble burst process. Thus, this result supports the policy view that it is not useful to postpone macroeconomic stability to conceal banking sector weakness. Journal: Journal of Economic Policy Reform Pages: 51-68 Issue: 1 Volume: 18 Year: 2015 Month: 1 X-DOI: 10.1080/17487870.2014.973879 File-URL: http://hdl.handle.net/10.1080/17487870.2014.973879 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jecprf:v:18:y:2015:i:1:p:51-68 Template-Type: ReDIF-Article 1.0 Author-Name: Andreas Sachs Author-X-Name-First: Andreas Author-X-Name-Last: Sachs Title: Unemployment, institutions, and interdependencies: identifying successful reforms Abstract: Labor market reforms, which reduce institutional rigidities, are assumed to be a well-suited approach to lower unemployment. However, it is still not perfectly clear which reforms actually lead to a fall in unemployment. One crucial issue is that reforms do not work in isolation, but have labor market effects which depend on other institutional factors. Such institutional interactions have rarely been considered in empirical macroeconomic studies in a systematic way, mainly due to model uncertainty. As a solution to this problem, a Bayesian model averaging approach is adopted in this paper to identify robust and significant institutional interactions for unemployment. Using a panel data-set for 17 OECD countries from 1982 to 2005, five robust and significant interaction terms are identified, and country-specific reform effects for the institutional indicators are derived. Journal: Journal of Economic Policy Reform Pages: 34-50 Issue: 1 Volume: 18 Year: 2015 Month: 1 X-DOI: 10.1080/17487870.2014.977903 File-URL: http://hdl.handle.net/10.1080/17487870.2014.977903 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jecprf:v:18:y:2015:i:1:p:34-50 Template-Type: ReDIF-Article 1.0 Author-Name: Erkki Karo Author-X-Name-First: Erkki Author-X-Name-Last: Karo Author-Name: Rainer Kattel Author-X-Name-First: Rainer Author-X-Name-Last: Kattel Title: Economic development and evolving state capacities in Central and Eastern Europe: can “smart specialization” make a difference? Abstract: We position “smart specialization” (SS) as the third external and conditionality-based reform of economic policy rationales – after Washington Consensus and Europeanization – in Central and Eastern Europe (CEE). We discuss what kind of state, policy, and administrative capacities, or routines, SS presumes. We show that over the years CEE economies have built very different routines, especially for policy coordination and public–private interactions. Design and implementation of functional SS strategies requires critical attention and development of these routines through contextual policy experimentation in all CEE regions. We provide some general guidelines for this. Journal: Journal of Economic Policy Reform Pages: 172-187 Issue: 2 Volume: 18 Year: 2015 Month: 4 X-DOI: 10.1080/17487870.2015.1009068 File-URL: http://hdl.handle.net/10.1080/17487870.2015.1009068 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jecprf:v:18:y:2015:i:2:p:172-187 Template-Type: ReDIF-Article 1.0 Author-Name: Randolph Luca Bruno Author-X-Name-First: Randolph Luca Author-X-Name-Last: Bruno Author-Name: Elodie Douarin Author-X-Name-First: Elodie Author-X-Name-Last: Douarin Author-Name: Julia Korosteleva Author-X-Name-First: Julia Author-X-Name-Last: Korosteleva Author-Name: Slavo Radosevic Author-X-Name-First: Slavo Author-X-Name-Last: Radosevic Title: Technology choices and growth: testing New Structural Economics in Transition Economies Abstract: We explore the relationship between development policies, finance and growth as approached by New Structural Economics (NSE) with special reference to Transition Economies (TEs). On a sample of 164 economies for 1963–2009, our analysis confirms NSE propositions that the type of development policies, as captured by the Technology Choice Index (TCI), has a significant effect on long-term growth. However, this differs for TEs as a whole and its subgroups. Further to this, using a sample of 94 countries for 1985–2009, we provide a first empirical test of the relationship between growth, TCI and financial structure distortions and we show that there is a negative relationship between financial distortions and TCI on the one hand and medium-term growth on the other hand. We also find that the negative effect of a higher ratio of TCI on medium-term growth is partly mitigated, although not eliminated, by moderate level of financial sector distortions. This points towards some positive externalities of simultaneous financial and industrial sector distortions, at least in the medium run. However, TEs are shown to differ from the rest of the sample as financial distortions play a more pronounced direct negative effect on medium-term growth in these countries. Journal: Journal of Economic Policy Reform Pages: 131-152 Issue: 2 Volume: 18 Year: 2015 Month: 4 X-DOI: 10.1080/17487870.2015.1013541 File-URL: http://hdl.handle.net/10.1080/17487870.2015.1013541 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jecprf:v:18:y:2015:i:2:p:131-152 Template-Type: ReDIF-Article 1.0 Author-Name: Erik Berglof Author-X-Name-First: Erik Author-X-Name-Last: Berglof Title: New structural economics meets European transition Abstract: This paper explores whether new structural economics, and more broadly Structuralist approaches, could add to our understanding of transition in Central and Eastern Europe – and ultimately asks whether new structural economics and transition economics might be extended or integrated into a dynamic model of structural transformation that could better account for this particular development experience and provide policy guidance for the future. We have presented three perspectives – new structural economics, transition economics and the Neo-Schumpetarian approach – all of them emphasising different aspects of structural transformation. Their relative explanatory power depends on the context – for example, the extent of distortions in the economy, the quality of the institutions and where a country finds itself relative to the world technology frontier – and the questions we are interested in understanding. We suggest that, to date, the Neo-Schumpetarian approach offers the most promising and persuasive story line to think about this difficult challenge. Journal: Journal of Economic Policy Reform Pages: 114-130 Issue: 2 Volume: 18 Year: 2015 Month: 4 X-DOI: 10.1080/17487870.2015.1013543 File-URL: http://hdl.handle.net/10.1080/17487870.2015.1013543 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jecprf:v:18:y:2015:i:2:p:114-130 Template-Type: ReDIF-Article 1.0 Author-Name: Erik Berglof Author-X-Name-First: Erik Author-X-Name-Last: Berglof Author-Name: Justin Yifu Lin Author-X-Name-First: Justin Author-X-Name-Last: Yifu Lin Author-Name: Slavo Radosevic Author-X-Name-First: Slavo Author-X-Name-Last: Radosevic Title: Transition economics meet new structural economics: editorial introduction Journal: Journal of Economic Policy Reform Pages: 89-95 Issue: 2 Volume: 18 Year: 2015 Month: 4 X-DOI: 10.1080/17487870.2015.1013544 File-URL: http://hdl.handle.net/10.1080/17487870.2015.1013544 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jecprf:v:18:y:2015:i:2:p:89-95 Template-Type: ReDIF-Article 1.0 Author-Name: Alessandro Muscio Author-X-Name-First: Alessandro Author-X-Name-Last: Muscio Author-Name: Alasdair Reid Author-X-Name-First: Alasdair Author-X-Name-Last: Reid Author-Name: Lorena Rivera Leon Author-X-Name-First: Lorena Author-X-Name-Last: Rivera Leon Title: An empirical test of the regional innovation paradox: can smart specialisation overcome the paradox in Central and Eastern Europe? Abstract: The regional innovation paradox is the greater need of lagging regions to invest in innovation and their relatively lower capacity to absorb funding compared to more advanced regions. Using data on regional public spending, industry composition and economic performance, we test empirically whether there is a differential impact of European funding on regional economic growth between Eastern and Western European regions. We conclude that the paradox is proven and consider the extent to which smart specialisation strategies may help to improve the quality of governance of regional innovation systems. Journal: Journal of Economic Policy Reform Pages: 153-171 Issue: 2 Volume: 18 Year: 2015 Month: 4 X-DOI: 10.1080/17487870.2015.1013545 File-URL: http://hdl.handle.net/10.1080/17487870.2015.1013545 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jecprf:v:18:y:2015:i:2:p:153-171 Template-Type: ReDIF-Article 1.0 Author-Name: Justin Yifu Lin Author-X-Name-First: Justin Yifu Author-X-Name-Last: Lin Title: The Washington Consensus revisited: a new structural economics perspective Abstract: The Washington Consensus reform resulted in economic collapse and stagnation in many transition economies and “lost decades” in other developing countries in 1980s and 1990s. The paper provides a new structural economics perspective of such failures. The Washington Consensus reform failed to recognize that many firms in a transition economy were not viable in an open, competitive market because those industries went against the comparative advantages determined by the economy’s endowment structure. Their survival relied on the government’s protections and subsidies through various interventions and distortions. The Washington Consensus advised the government to focus their reforms on issues related to property rights, corporate governance, government interventions, and other issues that may obstruct a firm’s normal management. Without resolving the firms’ viability problem, such reforms led to the firms’ collapse and an unintended decline and stagnation of the economy in the transition process. This paper suggests that the viability assumption in neoclassical economics be relaxed when analyzing development and transition issues in socialist, transition, and developing economies. Journal: Journal of Economic Policy Reform Pages: 96-113 Issue: 2 Volume: 18 Year: 2015 Month: 4 X-DOI: 10.1080/17487870.2014.936439 File-URL: http://hdl.handle.net/10.1080/17487870.2014.936439 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jecprf:v:18:y:2015:i:2:p:96-113 Template-Type: ReDIF-Article 1.0 Author-Name: Erik Berglof Author-X-Name-First: Erik Author-X-Name-Last: Berglof Author-Name: Dominique Foray Author-X-Name-First: Dominique Author-X-Name-Last: Foray Author-Name: Michael Landesmann Author-X-Name-First: Michael Author-X-Name-Last: Landesmann Author-Name: Justin Yifu Lin Author-X-Name-First: Justin Yifu Author-X-Name-Last: Lin Author-Name: Mario Nauro Campos Author-X-Name-First: Mario Nauro Author-X-Name-Last: Campos Author-Name: Peter Sanfey Author-X-Name-First: Peter Author-X-Name-Last: Sanfey Author-Name: Slavo Radosevic Author-X-Name-First: Slavo Author-X-Name-Last: Radosevic Author-Name: Natalya Volchkova Author-X-Name-First: Natalya Author-X-Name-Last: Volchkova Title: Transition economics meets new structural economics Journal: Journal of Economic Policy Reform Pages: 191-220 Issue: 3 Volume: 18 Year: 2015 Month: 7 X-DOI: 10.1080/17487870.2015.1018691 File-URL: http://hdl.handle.net/10.1080/17487870.2015.1018691 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jecprf:v:18:y:2015:i:3:p:191-220 Template-Type: ReDIF-Article 1.0 Author-Name: Graham Bird Author-X-Name-First: Graham Author-X-Name-Last: Bird Author-Name: Jim Mylonas Author-X-Name-First: Jim Author-X-Name-Last: Mylonas Author-Name: Dane Rowlands Author-X-Name-First: Dane Author-X-Name-Last: Rowlands Title: The political economy of participation in IMF programs: a disaggregated empirical analysis Abstract: What factors determine whether or not countries have programs with the International Monetary Fund (IMF)? The existing literature suggests that a number of economic and political variables are important, but there is disagreement about their relative significance. Moreover, the fit of general participation models is not particularly good. An increasingly popular view in the recent literature is that the pattern of IMF lending is politically driven and that it reflects the interests of the Fund’s leading shareholders; the US is seen as exerting a powerful influence. Using both quantitative and qualitative techniques, and based on an informal analytical framework, we examine in detail the factors that may be at work. We cover the period from 1984 to 2008. We discover considerable variation across the nature of programs (concessional and non-concessional), income levels, geographic regions, and time periods. The degree of observed variation means that it is unsafe to use one general participation model as the basis for evaluating the effects of IMF programs. It also means that the design of policy needs to reflect the nuances that the data reveal. Journal: Journal of Economic Policy Reform Pages: 221-243 Issue: 3 Volume: 18 Year: 2015 Month: 7 X-DOI: 10.1080/17487870.2015.1019289 File-URL: http://hdl.handle.net/10.1080/17487870.2015.1019289 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jecprf:v:18:y:2015:i:3:p:221-243 Template-Type: ReDIF-Article 1.0 Author-Name: Lans Bovenberg Author-X-Name-First: Lans Author-X-Name-Last: Bovenberg Author-Name: Raymond Gradus Author-X-Name-First: Raymond Author-X-Name-Last: Gradus Title: Reforming occupational pension schemes: the case of the Netherlands Abstract: In many countries, occupational plans are being reformed away from defined-benefit (DB) to defined-contribution (DC) designs. This paper explores the case of the Netherlands, which features a particularly high ratio of occupational pension assets to GDP. Dutch occupational DB plans suffer from a number of serious weaknesses, including ambiguous ownership of assets, back-loading of benefits, and lack of tailor-made risk management. To address these weaknesses, we propose collective individual DC plans that are actuarially fair. These schemes maintain important strengths of collective schemes, such as mandatory saving, collective procurement, and pooling of biometric risks. At the same time, they eliminate intergenerational conflicts about risk management and distribution through transparent individual property rights on financial assets and tailor-made risk profiles in individual accounts. We show how the transitional burden due to phasing out the back-loading of pension benefits can be addressed without a substantial increase in contributions. Journal: Journal of Economic Policy Reform Pages: 244-257 Issue: 3 Volume: 18 Year: 2015 Month: 7 X-DOI: 10.1080/17487870.2015.1041525 File-URL: http://hdl.handle.net/10.1080/17487870.2015.1041525 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jecprf:v:18:y:2015:i:3:p:244-257 Template-Type: ReDIF-Article 1.0 Author-Name: Alla Fridman Author-X-Name-First: Alla Author-X-Name-Last: Fridman Title: Water pricing reform analysis: alternative scenarios Abstract: This paper compares alternative transition paths to efficient water pricing. The analysis is based on representative agent model, where two sources of water supply exist: exhaustible groundwater stock and a renewable substitute. Two alternative water pricing reforms are considered: gradual tariff increase and multipart pricing with first block sold at the initial pre-reform tariff and additional water sold at higher prices (block pricing reform). Under block pricing reform, the amount of water offered at low price gradually diminishes. The results of comparative analysis prove that under the same reform time horizon block pricing is preferred to the gradual tariff increase. Journal: Journal of Economic Policy Reform Pages: 258-266 Issue: 3 Volume: 18 Year: 2015 Month: 7 X-DOI: 10.1080/17487870.2015.1057510 File-URL: http://hdl.handle.net/10.1080/17487870.2015.1057510 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jecprf:v:18:y:2015:i:3:p:258-266 Template-Type: ReDIF-Article 1.0 Author-Name: Judith Clifton Author-X-Name-First: Judith Author-X-Name-Last: Clifton Title: Impact factor improvements, new members of the editorial board and future planning Journal: Journal of Economic Policy Reform Pages: 189-190 Issue: 3 Volume: 18 Year: 2015 Month: 7 X-DOI: 10.1080/17487870.2015.1073892 File-URL: http://hdl.handle.net/10.1080/17487870.2015.1073892 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jecprf:v:18:y:2015:i:3:p:189-190 Template-Type: ReDIF-Article 1.0 Author-Name: Henry B. McFarland Author-X-Name-First: Henry B. Author-X-Name-Last: McFarland Title: The U.S. Department of Commerce’s approach to targeted dumping: the wrong test and the wrong response Abstract: The U.S. Department of Commerce (DOC) defines targeted dumping as a pattern of significant differences in the prices that importers charge in the U.S. to different purchasers, in different regions, or during different periods. If DOC finds targeted dumping, then it calculates the average dumping margin using zeroing, a practice that increases the calculated dumping duty. This article shows that DOC is using an inappropriate statistical test in targeted dumping investigations. The article also shows that a finding of targeted dumping does not justify the use of zeroing, an inherently flawed methodology that DOC has discarded in cases without targeted dumping. Journal: Journal of Economic Policy Reform Pages: 293-308 Issue: 4 Volume: 18 Year: 2015 Month: 10 X-DOI: 10.1080/17487870.2015.1013542 File-URL: http://hdl.handle.net/10.1080/17487870.2015.1013542 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jecprf:v:18:y:2015:i:4:p:293-308 Template-Type: ReDIF-Article 1.0 Author-Name: David M. Zimmer Author-X-Name-First: David M. Author-X-Name-Last: Zimmer Title: Does COBRA reduce the probability that job separators return to work? Abstract: This study examines a decade of individual-level US employment and insurance information to investigate whether federally mandated Consolidated Omnibus Reconciliation Act (COBRA) regulation affects post-separation employment activity. The empirical approach addresses the possibility that COBRA enrollment is endogenous with respect to post-separation employment outcomes. The main finding is that, although COBRA enrollees are 5 percentage points less likely to become re-employed, this relationship is not causal. Rather, individuals with lower probabilities of becoming re-employed tend to enroll in COBRA. The reason appears to be because, when compared to subjects who voluntarily leave for other jobs, subjects who separate for other reasons not only are less likely to become re-employed, but they also are approximately 23% more likely to enroll in COBRA. Journal: Journal of Economic Policy Reform Pages: 326-340 Issue: 4 Volume: 18 Year: 2015 Month: 10 X-DOI: 10.1080/17487870.2015.1019290 File-URL: http://hdl.handle.net/10.1080/17487870.2015.1019290 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jecprf:v:18:y:2015:i:4:p:326-340 Template-Type: ReDIF-Article 1.0 Author-Name: Jianmei Zhao Author-X-Name-First: Jianmei Author-X-Name-Last: Zhao Title: Did China’s Rural Appliance Rebate program boost home appliance consumption during the latest recession? Abstract: This article investigates the effectiveness of China’s “Rural Appliance Rebate” (RAR) program in boosting rural appliance consumption during the latest economic recession. Based on two rounds of rural household survey data in China, we adopt a difference-in-difference matching approach to assess the extent to which these rebates induced greater rural appliance consumption than they otherwise would have. Our analysis finds that the RAR program boosted subsidized home appliance consumption, but its stimulus effects are driven mainly by cell phones, no significant impacts are detected on refrigerators and color TVs, and its impacts on aggregate home appliance consumption are not pronounced on the whole. Our investigation into the heterogeneity of these effects suggests that, for low income households, the RAR program prominently boost their aggregate home appliance consumption. Journal: Journal of Economic Policy Reform Pages: 309-325 Issue: 4 Volume: 18 Year: 2015 Month: 10 X-DOI: 10.1080/17487870.2015.1049268 File-URL: http://hdl.handle.net/10.1080/17487870.2015.1049268 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jecprf:v:18:y:2015:i:4:p:309-325 Template-Type: ReDIF-Article 1.0 Author-Name: The Editors Title: Editorial Board Journal: Journal of Economic Policy Reform Pages: ebi-ebi Issue: 4 Volume: 18 Year: 2015 Month: 10 X-DOI: 10.1080/17487870.2015.1104453 File-URL: http://hdl.handle.net/10.1080/17487870.2015.1104453 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jecprf:v:18:y:2015:i:4:p:ebi-ebi Template-Type: ReDIF-Article 1.0 Author-Name: Orcan Cortuk Author-X-Name-First: Orcan Author-X-Name-Last: Cortuk Author-Name: Mustafa Haluk Guler Author-X-Name-First: Mustafa Haluk Author-X-Name-Last: Guler Title: Disaggregated approach to government spending shocks: a theoretical analysis Abstract: We calibrate a dynamic stochastic general equilibrium model that features a transmission mechanism with different types of government spending, while the literature usually treats government spending as a homogenous compound. In this regard, we manage to distinguish between different types of government spending (namely: government investment, government wage component consumption and non-wage component consumption) where each type of spending has a varied role in the economy. The government wage increase has the largest positive effect both on private consumption and output by affecting the economy through the government production. This is a natural consequence of government production being complementary to private consumption in our model. Other two government spending types, namely government non-wage consumption and government investment, also have positive effects on output, whereas their responses on (private) consumption are mostly negative. These results provide an alternative explanation for the wide range of multipliers existing in the literature as our setup enables them to produce different effects on macroeconomic variables. Journal: Journal of Economic Policy Reform Pages: 267-292 Issue: 4 Volume: 18 Year: 2015 Month: 10 X-DOI: 10.1080/17487870.2014.951046 File-URL: http://hdl.handle.net/10.1080/17487870.2014.951046 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jecprf:v:18:y:2015:i:4:p:267-292 Template-Type: ReDIF-Article 1.0 Author-Name: Erdal Atukeren Author-X-Name-First: Erdal Author-X-Name-Last: Atukeren Author-Name: Emrah İ. Çevik Author-X-Name-First: Emrah İ. Author-X-Name-Last: Çevik Author-Name: Turhan Korkmaz Author-X-Name-First: Turhan Author-X-Name-Last: Korkmaz Title: Downside business confidence spillovers in Europe: evidence from causality-in-risk tests Abstract: This paper employs an extreme risk spillovers test to investigate the bilateral business confidence spillovers between Greece, Italy, Spain, Portugal, France, and Germany. After controlling for domestic economic developments in each country and common international factors, downside risk spillovers are detected as a causal feedback between Spain and Portugal and unilaterally from Spain to Italy. Extremely low business sentiments in France, Germany, and Greece are mostly due to the common adverse economic environment and to each country’s own domestic economic developments. Journal: Journal of Economic Policy Reform Pages: 341-357 Issue: 4 Volume: 18 Year: 2015 Month: 10 X-DOI: 10.1080/17487870.2014.977902 File-URL: http://hdl.handle.net/10.1080/17487870.2014.977902 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jecprf:v:18:y:2015:i:4:p:341-357 Template-Type: ReDIF-Article 1.0 Author-Name: Joshua Aizenman Author-X-Name-First: Joshua Author-X-Name-Last: Aizenman Author-Name: Yothin Jinjarak Author-X-Name-First: Yothin Author-X-Name-Last: Jinjarak Author-Name: Minsoo Lee Author-X-Name-First: Minsoo Author-X-Name-Last: Lee Author-Name: Donghyun Park Author-X-Name-First: Donghyun Author-X-Name-Last: Park Title: Developing countries’ financial vulnerability to the eurozone crisis: an event study of equity and bond markets Abstract: The global crisis highlights the continued vulnerability of developing countries to shocks from advanced economies. Just a few years after the global crisis, the eurozone sovereign debt crisis has emerged as the single biggest threat to the global outlook. In this paper, we apply the event study methodology to gauge the scope for financial contagion from the EU to developing countries. More specifically, we estimate the responsiveness of equity and bond markets in developing countries to global crisis period and eurozone crisis news. Overall, we find that whereas global crisis period had a consistently negative effect on returns of equity and bond markets in developing countries, the effect of eurozone crisis news was more mixed and limited. Journal: Journal of Economic Policy Reform Pages: 1-19 Issue: 1 Volume: 19 Year: 2016 Month: 1 X-DOI: 10.1080/17487870.2015.1018831 File-URL: http://hdl.handle.net/10.1080/17487870.2015.1018831 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jecprf:v:19:y:2016:i:1:p:1-19 Template-Type: ReDIF-Article 1.0 Author-Name: Marta Rahona-López Author-X-Name-First: Marta Author-X-Name-Last: Rahona-López Author-Name: Inés P. Murillo-Huertas Author-X-Name-First: Inés P. Author-X-Name-Last: Murillo-Huertas Author-Name: Maria del Mar Salinas-Jiménez Author-X-Name-First: Maria del Mar Author-X-Name-Last: Salinas-Jiménez Title: Wage differentials by sector and gender: a quantile analysis for the Spanish case Abstract: This paper analyses existing wage differentials between workers in the public and private sectors and by gender in Spain. This analysis is run throughout the entire earnings distribution and observed wage differentials are decomposed into a part explained by differences in productive characteristics and a part due to differences in returns to such characteristics. Our results show that public sector workers tend to earn higher wages than private employees, although most of this sector wage gap is due to better public workers’ productive characteristics. A wage premium in favour of men is also found in both the public and private sectors, with the gender wage gap greater at the top of the earnings distribution. Journal: Journal of Economic Policy Reform Pages: 20-38 Issue: 1 Volume: 19 Year: 2016 Month: 1 X-DOI: 10.1080/17487870.2015.1028936 File-URL: http://hdl.handle.net/10.1080/17487870.2015.1028936 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jecprf:v:19:y:2016:i:1:p:20-38 Template-Type: ReDIF-Article 1.0 Author-Name: Julimar da Silva Bichara Author-X-Name-First: Julimar Author-X-Name-Last: da Silva Bichara Author-Name: Sandro Eduardo Monsueto da Silva Author-X-Name-First: Sandro Eduardo Author-X-Name-Last: Monsueto da Silva Author-Name: André Moreira Cunha Author-X-Name-First: André Author-X-Name-Last: Moreira Cunha Author-Name: Marcos Tadeu Caputi Lélis Author-X-Name-First: Marcos Tadeu Author-X-Name-Last: Caputi Lélis Title: Business cycle convergence and trade: Brazil and China in a changing world Abstract: The recent economic interaction between Latin America and Asia, particularly between Brazil and China, has attracted the attention of the academic world that seeks to understand the effects of this approach in terms of business cycle convergence, economic structure and development trajectory. This paper contributes to this debate, presenting new evidence about the type and quality of this relationship. Our results reveal that Brazil and China present different patterns of relationship between trade and productive specialization: while Brazil has an intra-industry trade pattern, China has an inter-industry trade pattern. We explore some normative implications and future research possibilities. Journal: Journal of Economic Policy Reform Pages: 39-64 Issue: 1 Volume: 19 Year: 2016 Month: 1 X-DOI: 10.1080/17487870.2015.1031231 File-URL: http://hdl.handle.net/10.1080/17487870.2015.1031231 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jecprf:v:19:y:2016:i:1:p:39-64 Template-Type: ReDIF-Article 1.0 Author-Name: Bryan Engelhardt Author-X-Name-First: Bryan Author-X-Name-Last: Engelhardt Author-Name: Justin Svec Author-X-Name-First: Justin Author-X-Name-Last: Svec Title: Efficient political contributions with conditional Coasian contracts Abstract: The externalities associated with political contributions imply agents choose a socially inefficient level. A typical market solution to these externalities would involve Coase bargaining where agents form contracts with payments conditional on the actions of others. These contracts, however, are hard to enforce because political contributions can be unobservable or unmeasurable. In this study, we modify these Coasian contracts, making the payments conditional on the outcome of the political election. We show the agents that form these contracts contribute the socially efficient amount. Journal: Journal of Economic Policy Reform Pages: 65-76 Issue: 1 Volume: 19 Year: 2016 Month: 1 X-DOI: 10.1080/17487870.2015.1034601 File-URL: http://hdl.handle.net/10.1080/17487870.2015.1034601 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jecprf:v:19:y:2016:i:1:p:65-76 Template-Type: ReDIF-Article 1.0 Author-Name: Sounman Hong Author-X-Name-First: Sounman Author-X-Name-Last: Hong Author-Name: Daniel Nadler Author-X-Name-First: Daniel Author-X-Name-Last: Nadler Title: The impact of political institutions on U.S. state bond yields during crises: evidence from the 2008 credit market seizure Abstract: This study examines how political institutions mediate bond market reactions to severe economic crisis, based on U.S. states’ experience of the 2008 credit market seizure. Following severe fiscal shocks, political institutions assume greater importance in assessing risk characteristics of state bonds. The bond market reacts most strongly to two factors: public sector union strength in a state and the proportion of Democrats in the state legislature. We suggest that the identity of political institutions becomes increasingly important, during periods of economic crises, when credit markets might expect that political systems can no longer delay stabilisations and must deliver policy. Journal: Journal of Economic Policy Reform Pages: 77-89 Issue: 1 Volume: 19 Year: 2016 Month: 1 X-DOI: 10.1080/17487870.2015.1077707 File-URL: http://hdl.handle.net/10.1080/17487870.2015.1077707 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jecprf:v:19:y:2016:i:1:p:77-89 Template-Type: ReDIF-Article 1.0 Author-Name: Guido Baldi Author-X-Name-First: Guido Author-X-Name-Last: Baldi Title: Fiscal policy rules, budget deficits, and forecasting biases Abstract: In this paper, we analyze the impact fiscal policy rules have on budget deficits and forecasting biases in official budget outlooks. Persistent budget deficits and over-optimistic budget forecasts have been observed in many countries in the past, especially in the euro area. To prevent such developments from happening in the future, fiscal rules have been revised or implemented with the aim to strengthen both preventive (ex-ante) and corrective (ex-post) elements of fiscal rules frameworks. Do such ex-ante and ex-post rules differ in their effects? In an attempt to answer this question, we build a two-period model and distinguish between ex-ante rules that apply to budget forecasts and ex-post rules that apply to realized budget deficits. Our model indicates that effectively enforced ex-post rules are more effective than ex-ante rules at reducing budget deficits. Interestingly, ex-ante rules differ from ex-post rules in their effects on forecasting biases. Only ex-post sanctions reduce forecasting biases, while ex-ante rules have no impact on such biases. In addition, we show that political stability and the size of government increase the effectiveness of fiscal rules. If, however, financial markets have a disciplining effect on governments, the effectiveness of fiscal rules is reduced. Our results imply that if fiscal policy rules cannot be effectively enforced, reforming other areas such as electoral rules or financial market regulations might be a more promising approach to ensuring sound public finances than fiscal policy rules. Journal: Journal of Economic Policy Reform Pages: 185-194 Issue: 2 Volume: 19 Year: 2016 Month: 4 X-DOI: 10.1080/17487870.2015.1057509 File-URL: http://hdl.handle.net/10.1080/17487870.2015.1057509 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jecprf:v:19:y:2016:i:2:p:185-194 Template-Type: ReDIF-Article 1.0 Author-Name: Germà Bel Author-X-Name-First: Germà Author-X-Name-Last: Bel Author-Name: Mildred E. Warner Author-X-Name-First: Mildred E. Author-X-Name-Last: Warner Title: Factors explaining inter-municipal cooperation in service delivery: a meta-regression analysis Abstract: Inter-municipal cooperation is an important public service delivery reform, whose drivers move beyond simple concerns with costs and economic efficiency, to policy issues related to governance structure and spatial context. We conduct a meta-regression analysis based on the existing multivariate empirical literature to explore what factors explain divergence in results in the existing empirical studies. We find strong evidence that fiscal constraints, spatial, and organizational factors are significant drivers of cooperation. Our meta-regressions do not yield results to explain divergence in results on community wealth, economies of scale, or racial homogeneity. More studies on these factors are needed to understand how these factors might affect cooperation. Future theoretical and empirical research should give more attention to spatial and organizational factors to develop a better understanding of factors driving cooperation, and how they differ across local government structures and regions. Journal: Journal of Economic Policy Reform Pages: 91-115 Issue: 2 Volume: 19 Year: 2016 Month: 4 X-DOI: 10.1080/17487870.2015.1100084 File-URL: http://hdl.handle.net/10.1080/17487870.2015.1100084 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jecprf:v:19:y:2016:i:2:p:91-115 Template-Type: ReDIF-Article 1.0 Author-Name: Ali M. Kutan Author-X-Name-First: Ali M. Author-X-Name-Last: Kutan Author-Name: Yaz Gülnür Muradoğlu Author-X-Name-First: Yaz Gülnür Author-X-Name-Last: Muradoğlu Author-Name: Zhong Yu Author-X-Name-First: Zhong Author-X-Name-Last: Yu Title: Worldwide impact of IMF policies during the Asian crisis: who does the IMF help, creditors or crisis countries? Abstract: This paper examines the effects of International Monetary Fund (IMF) policy announcements on financial markets worldwide. We investigate reactions from stock, bond, foreign exchange and futures markets and banking and financial companies during the Asian crisis. We explore the impact of IMF bailouts not only on crisis countries, but also on main creditor countries. We study the impact of local governments’ and public responses in crisis countries to account for interaction between the IMF and local parties. We show IMF involvement and local governments’ co-operation actually helps crisis countries but not creditors. We show that in crisis countries, financial markets generally react unfavourably to their governments’ initial demands for IMF assistance, while compliance of the crisis countries with the IMF policy action is commonly perceived as good news. Financial markets in crisis countries react negatively to prolonged negotiations and government actions against IMF policy. Creditor countries’ financial markets are not responsive to IMF actions in crisis countries. We discuss policy implications of findings. Journal: Journal of Economic Policy Reform Pages: 116-147 Issue: 2 Volume: 19 Year: 2016 Month: 4 X-DOI: 10.1080/17487870.2015.1107481 File-URL: http://hdl.handle.net/10.1080/17487870.2015.1107481 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jecprf:v:19:y:2016:i:2:p:116-147 Template-Type: ReDIF-Article 1.0 Author-Name: Pavel Vidal Alejandro Author-X-Name-First: Pavel Author-X-Name-Last: Vidal Alejandro Title: Cuba’s reform and economic growth: a comparative perspective with Vietnam Abstract: Cuban reform process lags behind the GDP growth reached by the Vietnamese. When comparing the evolution of the different sectors and demand components of GDP, Vietnam has had higher growth rates in all cases, highlighting exports first and investment second. Once the Balance of Payments Constrained Growth model has been estimated, the significant effect of the foreign exchange constraints on growth for both countries is confirmed. However, the Vietnam growth can be explained not only by its export success. International openness, which included the end of the US embargo, and institutional factors also explains the differential of results. Journal: Journal of Economic Policy Reform Pages: 148-165 Issue: 2 Volume: 19 Year: 2016 Month: 4 X-DOI: 10.1080/17487870.2015.1119046 File-URL: http://hdl.handle.net/10.1080/17487870.2015.1119046 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jecprf:v:19:y:2016:i:2:p:148-165 Template-Type: ReDIF-Article 1.0 Author-Name: Asel Isakova Author-X-Name-First: Asel Author-X-Name-Last: Isakova Author-Name: Zsoka Koczan Author-X-Name-First: Zsoka Author-X-Name-Last: Koczan Author-Name: Alexander Plekhanov Author-X-Name-First: Alexander Author-X-Name-Last: Plekhanov Title: How much do tariffs matter? Evidence from the customs union of Belarus, Kazakhstan and Russia Abstract: This paper provides an empirical analysis of the early impact of the formation of the customs union of Belarus, Kazakhstan and Russia, and associated changes in import schedules on the structure of imports. Relying on an original data-set of statutory tariffs we find that trade creation effects were significant only in trade between Russia and third countries, but that there was some trade destruction, with a significant negative impact on imports from China to Kazakhstan and Russia, and on imports from the EU to Belarus. However, the magnitude of this effect is relatively small, suggesting that the benefits of the new tariff policy per se are limited at best. Journal: Journal of Economic Policy Reform Pages: 166-184 Issue: 2 Volume: 19 Year: 2016 Month: 4 X-DOI: 10.1080/17487870.2014.988212 File-URL: http://hdl.handle.net/10.1080/17487870.2014.988212 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jecprf:v:19:y:2016:i:2:p:166-184 Template-Type: ReDIF-Article 1.0 Author-Name: Carlos Vidal-Meliá Author-X-Name-First: Carlos Author-X-Name-Last: Vidal-Meliá Author-Name: María del Carmen Boado-Penas Author-X-Name-First: María del Carmen Author-X-Name-Last: Boado-Penas Author-Name: Francisco Navarro-Cabo Author-X-Name-First: Francisco Author-X-Name-Last: Navarro-Cabo Title: Notional defined contribution pension schemes: why does only Sweden distribute the survivor dividend? Abstract: The aim of this paper is to analyse the role of the survivor dividend in notional defined contribution (NDC) pension schemes. At present, this feature can only be found in the Swedish defined contribution scheme. We develop a model that endorses the idea that the survivor dividend has a strong basis for enabling the NDC scheme to achieve financial equilibrium and that not including the dividend is a non-transparent way of compensating for increases in longevity and/or legacy costs from old pension systems. We also find that the average effect of the dividend remains unchanged for any constant annual rate of population growth, that contributors who reach retirement age always get a higher return than the scheme does, and that population growth enables cohorts with more years of contributions to benefit to a greater extent from the dividend effect. Journal: Journal of Economic Policy Reform Pages: 200-220 Issue: 3 Volume: 19 Year: 2016 Month: 7 X-DOI: 10.1080/17487870.2015.1028547 File-URL: http://hdl.handle.net/10.1080/17487870.2015.1028547 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jecprf:v:19:y:2016:i:3:p:200-220 Template-Type: ReDIF-Article 1.0 Author-Name: Huamao Zheng Author-X-Name-First: Huamao Author-X-Name-Last: Zheng Author-Name: Teng Zhong Author-X-Name-First: Teng Author-X-Name-Last: Zhong Title: The impacts of social pension on rural household expenditure: evidence from China Abstract: In 2009, China began to implement a new social pension scheme in rural areas. We examine the impacts of this social pension on two main components of rural household expenditure, consumption and agricultural production investment. Our findings show that on average, rural households increase consumption by 1–3% and agricultural investment by as high as 6–9% in pilot counties. Further estimations reveal that the pension mainly affects the households with old-aged members and the poorer families, and that the saving rate hasn’t been changed by the pension, which support more the contingent income than the life-cycle hypothesis. We also find that among various types of expenditures, the most dramatic increases have occurred in food consumption and operational inputs on agricultural production. Journal: Journal of Economic Policy Reform Pages: 221-237 Issue: 3 Volume: 19 Year: 2016 Month: 7 X-DOI: 10.1080/17487870.2015.1041524 File-URL: http://hdl.handle.net/10.1080/17487870.2015.1041524 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jecprf:v:19:y:2016:i:3:p:221-237 Template-Type: ReDIF-Article 1.0 Author-Name: Murat Üngör Author-X-Name-First: Murat Author-X-Name-Last: Üngör Title: Did the rising importance of services decelerate overall productivity improvement of Turkey during 2002–2007? Abstract: This paper answers the question of what would have been the growth rate of aggregate productivity in Turkey between 2002 and 2007, had it realized China’s rates of productivity growth in agriculture, industry, and services. It does this in a three-sector general equilibrium model calibrated to the Turkish economy over the 2002–2007 period. The main findings are: (i) Turkey would have had much higher aggregate productivity growth over this period if it had experienced China’s service sector productivity growth; (ii) very low productivity growth rates in finance and in the non-market service sector are the main culprits behind Turkey’s weak service-sector performance. Journal: Journal of Economic Policy Reform Pages: 238-261 Issue: 3 Volume: 19 Year: 2016 Month: 7 X-DOI: 10.1080/17487870.2015.1057508 File-URL: http://hdl.handle.net/10.1080/17487870.2015.1057508 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jecprf:v:19:y:2016:i:3:p:238-261 Template-Type: ReDIF-Article 1.0 Author-Name: Nicole Gurran Author-X-Name-First: Nicole Author-X-Name-Last: Gurran Author-Name: Kristian Ruming Author-X-Name-First: Kristian Author-X-Name-Last: Ruming Title: Less planning, more development? Housing and urban reform discourses in Australia Abstract: This paper examines how particular interests shape urban policy debate and reform in Australia. With a particular emphasis on proposed planning system reforms in the nation’s largest state of New South Wales, we examine written submissions from development industry sectors, resident groups, and professional associations. We then compare these submissions to government responses, finding these responses heavily reflect industry narratives. In the context of an ongoing microeconomic reform agenda oriented towards deregulation and competition policy, housing development is framed as central to delivering economic growth, while the planning system is portrayed as a constraint holding back investment and new housing production. Through this prism, a series of rhetorical strategies reframe community concerns about housing affordability and the impact of new development to fit the growth agenda, while environmental and social considerations are largely sidelined. Journal: Journal of Economic Policy Reform Pages: 262-280 Issue: 3 Volume: 19 Year: 2016 Month: 7 X-DOI: 10.1080/17487870.2015.1065184 File-URL: http://hdl.handle.net/10.1080/17487870.2015.1065184 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jecprf:v:19:y:2016:i:3:p:262-280 Template-Type: ReDIF-Article 1.0 Author-Name: Kiyoyasu Tanaka Author-X-Name-First: Kiyoyasu Author-X-Name-Last: Tanaka Author-Name: Shawn Arita Author-X-Name-First: Shawn Author-X-Name-Last: Arita Title: Does policy reform promote FDI in developing economies? a firm-level simulation approach Abstract: How do policy reforms for foreign investors in developing economies affect inward foreign direct investment? Using a firm heterogeneity model calibrated to match data on Japanese multinational firms, we simulate how multinationals respond to a decline in investment procedure days. We find that such policy reforms in investment procedures significantly increase the aggregate entries and sales of multinational firms in developing economies, with the more pronounced impact at the extensive margin than at the intensive margin. At the firm level, declining entry costs encourage more productive firms to invest in a wider range of markets although such impacts are modest for the most productive firms that already penetrate many markets. The impacts on foreign sales per multinational firm are less clear-cut in magnitude across productivity levels in part because falling entry costs directly increase multinational entry to developing economies, but only indirectly encourage their existing production in these markets. Journal: Journal of Economic Policy Reform Pages: 281-304 Issue: 3 Volume: 19 Year: 2016 Month: 7 X-DOI: 10.1080/17487870.2015.1100083 File-URL: http://hdl.handle.net/10.1080/17487870.2015.1100083 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jecprf:v:19:y:2016:i:3:p:281-304 Template-Type: ReDIF-Article 1.0 Author-Name: The Editors Title: Call for Papers Journal: Journal of Economic Policy Reform Pages: 195-199 Issue: 3 Volume: 19 Year: 2016 Month: 7 X-DOI: 10.1080/17487870.2016.1207294 File-URL: http://hdl.handle.net/10.1080/17487870.2016.1207294 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jecprf:v:19:y:2016:i:3:p:195-199 Template-Type: ReDIF-Article 1.0 Author-Name: Salvador Pérez-Moreno Author-X-Name-First: Salvador Author-X-Name-Last: Pérez-Moreno Author-Name: María J. Angulo-Guerrero Author-X-Name-First: María J. Author-X-Name-Last: Angulo-Guerrero Title: Does economic freedom increase income inequality? Evidence from the EU countries Abstract: This paper examines the relationship between economic liberalization and income inequality in the EU using panel data for the 2000s. The empirical evidence suggests that economic freedom is strongly related to income inequality. However, not all areas of economic freedom affect income distribution similarly. Government size is robustly associated with inequality, and also when controlling for potential endogeneity in a dynamic panel data analysis. Regulation is linked to income inequality as well, whereas legal system and sound money have no significant effects on income distribution. In the case of freedom to trade internationally, the relationship differs between old (EU-15) and new (former socialist) EU countries. Journal: Journal of Economic Policy Reform Pages: 327-347 Issue: 4 Volume: 19 Year: 2016 Month: 10 X-DOI: 10.1080/17487870.2015.1128832 File-URL: http://hdl.handle.net/10.1080/17487870.2015.1128832 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jecprf:v:19:y:2016:i:4:p:327-347 Template-Type: ReDIF-Article 1.0 Author-Name: Alfred Greiner Author-X-Name-First: Alfred Author-X-Name-Last: Greiner Title: Human capital formation and public debt: growth and welfare effects of three different deficit policies Abstract: We analyze an endogenous growth model public educational spending. We show that the balanced budget policy and the policy with a slight deficit yield higher growth than a debt policy where public debt grows at the same rate as GDP, unless the government is a creditor. As concerns welfare, it can be demonstrated that a strong deficit policy yields lower welfare than a balanced budget and a slight deficit policy, unless initial debt ratios are low and the intertemporal elasticity of substitution is high. Finally, there may exist an inverted U-shaped relation between welfare and deficit-financed educational spending. Journal: Journal of Economic Policy Reform Pages: 369-385 Issue: 4 Volume: 19 Year: 2016 Month: 10 X-DOI: 10.1080/17487870.2015.1128834 File-URL: http://hdl.handle.net/10.1080/17487870.2015.1128834 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jecprf:v:19:y:2016:i:4:p:369-385 Template-Type: ReDIF-Article 1.0 Author-Name: Julio J. Guzman Author-X-Name-First: Julio J. Author-X-Name-Last: Guzman Title: Social protection during recessions: evidence from Chile Abstract: This article analyzes the main labor market risk management strategies adopted by the Chilean Government during the 1999 recession that was initially related to the Asian financial crisis. Their successes and failures can suggest innovative social protection solutions for other countries. It seems that the 1999–2001 labor reforms and a three-year plan to increase the minimum wage intensified the recession’s effects on unemployment. Probit models indicate that households coped with the recession’s effects by increasing wives’ labor supply but not by withdrawing children from schools. The expansion of employment programs probably helped households to adopt these coping strategies. Journal: Journal of Economic Policy Reform Pages: 348-368 Issue: 4 Volume: 19 Year: 2016 Month: 10 X-DOI: 10.1080/17487870.2016.1181549 File-URL: http://hdl.handle.net/10.1080/17487870.2016.1181549 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jecprf:v:19:y:2016:i:4:p:348-368 Template-Type: ReDIF-Article 1.0 Author-Name: Michael Connolly Author-X-Name-First: Michael Author-X-Name-Last: Connolly Author-Name: Cheng Li Author-X-Name-First: Cheng Author-X-Name-Last: Li Title: Government spending and economic growth in the OECD countries Abstract: Using panel data from 1995 to 2011 for 34 OECD countries, we examine the effects of government consumption spending, public social spending, and public investment on economic growth. We use a generalized method of moments estimation technique to solve inconsistency problems with fixed effects and random effects panel estimation. We find that an increase in public social spending has a significant negative effect on subsequent economic growth. Government consumption spending and public investment have no significant effect on subsequent economic growth. Journal: Journal of Economic Policy Reform Pages: 386-395 Issue: 4 Volume: 19 Year: 2016 Month: 10 X-DOI: 10.1080/17487870.2016.1213168 File-URL: http://hdl.handle.net/10.1080/17487870.2016.1213168 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jecprf:v:19:y:2016:i:4:p:386-395 Template-Type: ReDIF-Article 1.0 Author-Name: Mariana Mazzucato Author-X-Name-First: Mariana Author-X-Name-Last: Mazzucato Author-Name: Caetano C.R. Penna Author-X-Name-First: Caetano C.R. Author-X-Name-Last: Penna Title: Beyond market failures: the market creating and shaping roles of state investment banks Abstract: The paper develops a typological framework of the roles of state investment banks (SIBs) in the economy. The typology identifies four different roles: countercyclical; developmental; venture capitalist; and challenge-led. The paper conceptually elaborates the typology by first providing a historical overview of SIBs, and then discussing how the mainstream “market failure theory” justifies them. It then advances a different conceptualization based on insights from heterodox economics, showing that all roles of SIBs are more about market creating/shaping rather than market-failure fixing. The paper concludes with a proposal of a new agenda for research on SIBs based on our typological framework. Journal: Journal of Economic Policy Reform Pages: 305-326 Issue: 4 Volume: 19 Year: 2016 Month: 10 X-DOI: 10.1080/17487870.2016.1216416 File-URL: http://hdl.handle.net/10.1080/17487870.2016.1216416 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jecprf:v:19:y:2016:i:4:p:305-326 Template-Type: ReDIF-Article 1.0 Author-Name: Julián Díaz-Saavedra Author-X-Name-First: Julián Author-X-Name-Last: Díaz-Saavedra Title: Tax and transfer programs, retirement behavior, and work hours over the life cycle Abstract: In this paper, we use a computable overlapping generations model economy to analyze the quantitative effects of some reforms on tax and transfer programs, aimed at easing the tax burden on the labor supply of older workers. We focus on retirement behavior, work hours over the life cycle, and efficiency gains. We find that the labor supply of older workers is very responsive to changes in tax and transfer programs and show that the gains, in terms of old-age work hours, are non-trivial. However, we also find that longer careers may not substantially increase aggregate hours because workers may reallocate labor supply over the life cycle in response to retiring later. Moreover, since longer careers may also reduce saving rates, we also find that changes in tax and transfer programs aimed at boosting the employment rates of the elderly may reduce output per head. Journal: Journal of Economic Policy Reform Pages: 64-85 Issue: 1 Volume: 20 Year: 2017 Month: 1 X-DOI: 10.1080/17487870.2015.1113381 File-URL: http://hdl.handle.net/10.1080/17487870.2015.1113381 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jecprf:v:20:y:2017:i:1:p:64-85 Template-Type: ReDIF-Article 1.0 Author-Name: Mohsen Bahmani-Oskooee Author-X-Name-First: Mohsen Author-X-Name-Last: Bahmani-Oskooee Author-Name: Jungho Baek Author-X-Name-First: Jungho Author-X-Name-Last: Baek Title: Economic uncertainty, monetary uncertainty and the Korean demand for money Abstract: Economic uncertainty and monetary uncertainty are said to affect public’s holding of money in either direction. In this paper, we consider the Korean demand for money, and after including two GARCH-based measures of output uncertainty and monetary uncertainty, we show that both measures exert significant effects on the demand for money in Korea in the short run. However, only the adverse effects of output uncertainty lasts into the long run. Indeed, including the two uncertainty measures yield a stable demand for money in Korea. Journal: Journal of Economic Policy Reform Pages: 86-97 Issue: 1 Volume: 20 Year: 2017 Month: 1 X-DOI: 10.1080/17487870.2016.1213166 File-URL: http://hdl.handle.net/10.1080/17487870.2016.1213166 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jecprf:v:20:y:2017:i:1:p:86-97 Template-Type: ReDIF-Article 1.0 Author-Name: Juergen Braunstein Author-X-Name-First: Juergen Author-X-Name-Last: Braunstein Title: Understanding the politics of bailout policies in non-Western countries: The use of sovereign wealth funds Abstract: This article examines bailout policies in non-Western states through selected case studies of financial bailouts in Hong Kong and Singapore between the 1960s and 1990s. Given their structural similarities and extreme openness, standard explanations would expect to find similar policy responses over this period. However, between the 1960s and 1990s, bailout policies differed greatly between the two countries, particularly with respect to the use of their sovereign wealth funds (SWFs). This article also shows that the differing uses of SWFs reflected the respective regulatory environments. In line with an emerging stream of studies in comparative politics, the present article finds that these differences take root in the institutional settings of the respective countries and vary across state-business relations. Journal: Journal of Economic Policy Reform Pages: 46-63 Issue: 1 Volume: 20 Year: 2017 Month: 1 X-DOI: 10.1080/17487870.2016.1247705 File-URL: http://hdl.handle.net/10.1080/17487870.2016.1247705 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jecprf:v:20:y:2017:i:1:p:46-63 Template-Type: ReDIF-Article 1.0 Author-Name: Furong Jin Author-X-Name-First: Furong Author-X-Name-Last: Jin Author-Name: Keun Lee Author-X-Name-First: Keun Author-X-Name-Last: Lee Title: Dynamics of the growth–inequality nexus in China: roles of surplus labor, openness, education, and technical change in province-panel analysis Abstract: The paper examines the complex interrelationship between economic growth and the urban–rural income inequality in China by estimating a simultaneous equation system. This study uses a panel data-set that covers 29 provinces from 1988 to 2007, and compares the earlier period with the later period. It finds a robust and positive impact of the rural surplus labor on urban–rural inequality, which is consistent with Lewis’ dual economy theory. Economic growth is found to aggravate the urban–rural inequality in the earlier period, but there is no hard evidence in the later period. This implies that China has not yet, or at least by 2007, entered the second stage of the Kuznets curve. We also find no robust evidence on the impact of the inequality on growth in either period, but find robust evidence on the impact of both foreign direct investment and exports on the increasing inequality during the earlier period, whereas no significant impact in the later period is found. Finally, the spread of education reduced the inequality in the earlier period, but no such impact is robust in the later period. Journal: Journal of Economic Policy Reform Pages: 1-25 Issue: 1 Volume: 20 Year: 2017 Month: 1 X-DOI: 10.1080/17487870.2016.1258311 File-URL: http://hdl.handle.net/10.1080/17487870.2016.1258311 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jecprf:v:20:y:2017:i:1:p:1-25 Template-Type: ReDIF-Article 1.0 Author-Name: Sharon Poczter Author-X-Name-First: Sharon Author-X-Name-Last: Poczter Title: Democratization and the depoliticization of the banking sector: Are all banks affected equally? Abstract: This paper shows that the influence of the dramatic change in political ties of the Indonesian banking sector following democratization varies widely by bank ownership type. Panel estimates using several unique data-sets show that the decrease in political ties over democratization positively influences the performance of government-owned banks while negatively influencing the performance for privately held banks. Results remain robust to a variety of alternative hypotheses and sensitivity tests. This study provides evidence not only of the differential impact of depoliticization, but also suggests that the relationship between political connections and performance may be different based on bank ownership. Journal: Journal of Economic Policy Reform Pages: 26-45 Issue: 1 Volume: 20 Year: 2017 Month: 1 X-DOI: 10.1080/17487870.2016.1260013 File-URL: http://hdl.handle.net/10.1080/17487870.2016.1260013 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jecprf:v:20:y:2017:i:1:p:26-45 Template-Type: ReDIF-Article 1.0 Author-Name: Tamoya A.L. Christie Author-X-Name-First: Tamoya A.L. Author-X-Name-Last: Christie Author-Name: Felix K. Rioja Author-X-Name-First: Felix K. Author-X-Name-Last: Rioja Title: Fiscal position and the financing of productive government expenditures: an application to Latin America Abstract: Government spending on public infrastructure, education, and health care can increase economic growth. However, the appropriate financing depends on a country’s fiscal position. We develop a two-sector endogenous growth model to explore how variations in the composition and financing of government expenditures affect economic growth. We find that, when tax rates are moderate, funding public investment by raising taxes may increase long-run growth. If existing tax rates are high, public investment is only growth enhancing if funded by restructuring the composition of overall public spending. Additionally, public investment that is debt financed can have adverse effects on long-run growth due to the resulting increases in interest rates and debt-servicing costs. Journal: Journal of Economic Policy Reform Pages: 113-135 Issue: 2 Volume: 20 Year: 2017 Month: 4 X-DOI: 10.1080/17487870.2015.1119045 File-URL: http://hdl.handle.net/10.1080/17487870.2015.1119045 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jecprf:v:20:y:2017:i:2:p:113-135 Template-Type: ReDIF-Article 1.0 Author-Name: Eric Akobeng Author-X-Name-First: Eric Author-X-Name-Last: Akobeng Title: Gross Capital Formation, Institutions and Poverty in Sub-Saharan Africa Abstract: The conventional wisdom is that rapid economic growth is driven by investment. Paying particular attention to the state of gross fixed capital formation (gfcf), poverty and institutions in sub-Saharan Africa, this paper investigates the effect of gfcf on poverty and explores whether the gfcf and poverty relationship can be strengthened by institutions. Using the panel data-set of 41 sub-Saharan African countries over the period 1981–2010 and dynamic two-step system generalised method of moment estimator, it is found that gfcf reduces poverty and institutions reinforce the gfcf and poverty link. Journal: Journal of Economic Policy Reform Pages: 136-164 Issue: 2 Volume: 20 Year: 2017 Month: 4 X-DOI: 10.1080/17487870.2015.1128833 File-URL: http://hdl.handle.net/10.1080/17487870.2015.1128833 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jecprf:v:20:y:2017:i:2:p:136-164 Template-Type: ReDIF-Article 1.0 Author-Name: Tiago Cardao-Pito Author-X-Name-First: Tiago Author-X-Name-Last: Cardao-Pito Author-Name: Diogo Baptista Author-X-Name-First: Diogo Author-X-Name-Last: Baptista Title: Portugal’s banking and financial crises: unexpected consequences of monetary integration? Abstract: Portugal’s current financial crisis might be related to a banking crisis resulting from joining the Euro. The new-currency eliminated the exchange rate risk, but not the credit or liquidity risks within the Euroarea. However, Portuguese banks acted as if all of these risks had disappeared. They began pumping money in Portugal, by borrowing intensively in Euros abroad at low interest rates. The ensuing liquidity generated a capital-flow bonanza boom that culminated in a bust phase. Private and sovereign debt dramatically increased, which further soared when the government rescued banks. Portugal was then compelled to take extreme measures to address extraordinary debt-levels. Journal: Journal of Economic Policy Reform Pages: 165-191 Issue: 2 Volume: 20 Year: 2017 Month: 4 X-DOI: 10.1080/17487870.2016.1181551 File-URL: http://hdl.handle.net/10.1080/17487870.2016.1181551 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jecprf:v:20:y:2017:i:2:p:165-191 Template-Type: ReDIF-Article 1.0 Author-Name: The Editors Title: Erratum Journal: Journal of Economic Policy Reform Pages: (iii)-(iii) Issue: 2 Volume: 20 Year: 2017 Month: 4 X-DOI: 10.1080/17487870.2017.1286076 File-URL: http://hdl.handle.net/10.1080/17487870.2017.1286076 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jecprf:v:20:y:2017:i:2:p:(iii)-(iii) Template-Type: ReDIF-Article 1.0 Author-Name: Ricardo T. Fernholz Author-X-Name-First: Ricardo T. Author-X-Name-Last: Fernholz Title: The distributional effects of progressive capital taxes Abstract: Rising inequality since the 1980s has spurred much research examining the underlying causes and potential policy responses. Among the more controversial, One of the more controversial policy proposals is a progressive capital tax in response to rising top wealth shares around the world proposes a progressive capital tax in response to rising top wealth shares around the world. This paper introduces rank-based econometric methods for dynamic power laws as a tool for estimating the effect of progressive capital taxes on the distribution of wealth under different assumptions about the impact of these taxes on household behavior. In most scenarios, we find that a small tax levied on 1% of households would substantially reshape the US wealth distribution and reduce inequality. Journal: Journal of Economic Policy Reform Pages: 99-112 Issue: 2 Volume: 20 Year: 2017 Month: 4 X-DOI: 10.1080/17487870.2017.1294074 File-URL: http://hdl.handle.net/10.1080/17487870.2017.1294074 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jecprf:v:20:y:2017:i:2:p:99-112 Template-Type: ReDIF-Article 1.0 Author-Name: Belén Díaz Díaz Author-X-Name-First: Belén Author-X-Name-Last: Díaz Díaz Author-Name: Rebeca García-Ramos Author-X-Name-First: Rebeca Author-X-Name-Last: García-Ramos Author-Name: Myriam García-Olalla Author-X-Name-First: Myriam Author-X-Name-Last: García-Olalla Title: Shareholder wealth responses to European legislation on bank executive compensation Abstract: This paper uses an event study approach to investigate the shareholder wealth responses to European legislation on bank executive compensation. Using a sample of 124 banks over 2009–2010 and over 20 legislative and related events, we find that in early stages bank shareholders react positively to broad discussion at the EU level on executive pay. When plans to regulate the pay process are considered, however, this results in a negative stockholder reaction. We also find that large bank shareholders are most affected by remuneration policy. Journal: Journal of Economic Policy Reform Pages: 271-291 Issue: 3 Volume: 20 Year: 2017 Month: 7 X-DOI: 10.1080/17487870.2017.1286988 File-URL: http://hdl.handle.net/10.1080/17487870.2017.1286988 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jecprf:v:20:y:2017:i:3:p:271-291 Template-Type: ReDIF-Article 1.0 Author-Name: Santiago Carbó-Valverde Author-X-Name-First: Santiago Author-X-Name-Last: Carbó-Valverde Author-Name: Richard J. Rosen Author-X-Name-First: Richard J. Author-X-Name-Last: Rosen Author-Name: Francisco Rodríguez-Fernández Author-X-Name-First: Francisco Author-X-Name-Last: Rodríguez-Fernández Title: Are covered bonds a substitute for mortgage-backed securities? Abstract: Given the problems in the mortgage-backed securities (MBS) market during the financial crisis, some suggest that covered bonds (CB) might be a substitute for MBS. This could lead to a number of policy alternatives in countries where regulation and business have been mainly leaning to one of these types of securities. Examining the use of CB and MBS in the U.S. and Europe, we find that the two often seem to be used for different purposes. Banks are more likely to use CB when they have liquidity needs while MBS are associated with risk management and agency problems. Introducing MBS to markets where only CB are common or CB to markets where only MBS are common could have large effects. Journal: Journal of Economic Policy Reform Pages: 238-253 Issue: 3 Volume: 20 Year: 2017 Month: 7 X-DOI: 10.1080/17487870.2017.1293537 File-URL: http://hdl.handle.net/10.1080/17487870.2017.1293537 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jecprf:v:20:y:2017:i:3:p:238-253 Template-Type: ReDIF-Article 1.0 Author-Name: Philip Molyneux Author-X-Name-First: Philip Author-X-Name-Last: Molyneux Title: Are banks public utilities? Evidence from Europe Abstract: The regulatory response to the global financial crisis has been to instal a myriad of new rules in order to improve bank capital and liquidity, as well as to reduce systemic risks through structural reform. All these new rules place a straightjacket around banker’s activities and inhibit their operational freedom. This new environment has made European banks look less like private free-wheeling profit-maximising firms and more like public utilities. The utility services banks provide to society means that they should be overseen even more heavily. This includes greater regulatory oversight of bank pricing, profitability and service provision. Journal: Journal of Economic Policy Reform Pages: 199-213 Issue: 3 Volume: 20 Year: 2017 Month: 7 X-DOI: 10.1080/17487870.2017.1294073 File-URL: http://hdl.handle.net/10.1080/17487870.2017.1294073 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jecprf:v:20:y:2017:i:3:p:199-213 Template-Type: ReDIF-Article 1.0 Author-Name: Judith Clifton Author-X-Name-First: Judith Author-X-Name-Last: Clifton Author-Name: Marcos Fernández-Gutiérrez Author-X-Name-First: Marcos Author-X-Name-Last: Fernández-Gutiérrez Author-Name: Myriam García-Olalla Author-X-Name-First: Myriam Author-X-Name-Last: García-Olalla Title: Including vulnerable groups in financial services: insights from consumer satisfaction Abstract: The crisis brought into relief problems within the financial sector which seriously affected consumer trust. This paper provides new evidence on the experiences of two socio-economic groups associated with potential vulnerability – the less educated and the elderly – with financial service markets across Europe. We find that the less educated and the elderly are less satisfied and experience greater difficulties than other consumers as regards complaining, comparing offers, or switching, in the mortgage, and investment product and bank account markets, respectively. This evidence is of use to policy-makers seeking ways of improving financial regulation from a consumer perspective. Journal: Journal of Economic Policy Reform Pages: 214-237 Issue: 3 Volume: 20 Year: 2017 Month: 7 X-DOI: 10.1080/17487870.2017.1308866 File-URL: http://hdl.handle.net/10.1080/17487870.2017.1308866 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jecprf:v:20:y:2017:i:3:p:214-237 Template-Type: ReDIF-Article 1.0 Author-Name: Rosa M. Mayoral Author-X-Name-First: Rosa M. Author-X-Name-Last: Mayoral Author-Name: Eleuterio Vallelado Author-X-Name-First: Eleuterio Author-X-Name-Last: Vallelado Title: Beyond rational behaviour: the non-financial variables that condition shareholder action during a takeover Abstract: This article provides experimental evidence that bidder and target shareholders of a takeover announcement exhibit differences in their actions explained by individual traits and by the environment in which investors must decide. These variables should be considered when designing an adequate investor protection policy. Before the crisis, investor protection regulation was based on the rational behaviour hypothesis and characterized by an overreliance on disclosure and financial literacy strategies. However, the new European policy on financial services has acknowledged the lack of adequate protection, and has increased transparency and access to information for investors in MIFID II and MiFIR. Journal: Journal of Economic Policy Reform Pages: 254-270 Issue: 3 Volume: 20 Year: 2017 Month: 7 X-DOI: 10.1080/17487870.2017.1316504 File-URL: http://hdl.handle.net/10.1080/17487870.2017.1316504 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jecprf:v:20:y:2017:i:3:p:254-270 Template-Type: ReDIF-Article 1.0 Author-Name: Judith Clifton Author-X-Name-First: Judith Author-X-Name-Last: Clifton Author-Name: Myriam García-Olalla Author-X-Name-First: Myriam Author-X-Name-Last: García-Olalla Author-Name: Philip Molyneux Author-X-Name-First: Philip Author-X-Name-Last: Molyneux Title: Introduction to the special issue: new perspectives on regulating banks after the global financial crisis Journal: Journal of Economic Policy Reform Pages: 193-198 Issue: 3 Volume: 20 Year: 2017 Month: 7 X-DOI: 10.1080/17487870.2017.1330687 File-URL: http://hdl.handle.net/10.1080/17487870.2017.1330687 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jecprf:v:20:y:2017:i:3:p:193-198 Template-Type: ReDIF-Article 1.0 Author-Name: Georgios Chortareas Author-X-Name-First: Georgios Author-X-Name-Last: Chortareas Author-Name: Vassilis E. Logothetis Author-X-Name-First: Vassilis E. Author-X-Name-Last: Logothetis Author-Name: Andreas A. Papandreou Author-X-Name-First: Andreas A. Author-X-Name-Last: Papandreou Title: Political cycles in Greece’s municipal employment Abstract: We consider the politically motivated fluctuations in Greece’s municipal employment, constructing a data-set from primary data and focusing on the composition of municipal employment in terms of employment relationship forms. Our analysis produces strong evidence of pre-electoral manipulation through increases in the number of contract employees. Considering a number of control variables and robustness checks does not affect the key results. Such variables include whether mayors run for reelection, incumbents’ political alignment with central government, partisan shifts, general elections, mayors’ turnover rate, and timing patterns. Our evidence provides insights into Greece’s political economy in the run-up to the current economic crisis. Journal: Journal of Economic Policy Reform Pages: 321-342 Issue: 4 Volume: 20 Year: 2017 Month: 10 X-DOI: 10.1080/17487870.2016.1180251 File-URL: http://hdl.handle.net/10.1080/17487870.2016.1180251 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jecprf:v:20:y:2017:i:4:p:321-342 Template-Type: ReDIF-Article 1.0 Author-Name: Connel Fullenkamp Author-X-Name-First: Connel Author-X-Name-Last: Fullenkamp Author-Name: Céline Rochon Author-X-Name-First: Céline Author-X-Name-Last: Rochon Title: Reconsidering bank capital regulation: a new combination of rules, regulators, and market discipline Abstract: Despite revisions to bank capital standards, fundamental shortcomings remain: the rules for setting capital requirements need to be simpler, and resolution should be an essential part of the capital requirement framework.We propose a revised system of capital regulation that addresses these needs by making changes to all three pillars of bank regulation: only common equity should be recognized as regulatory capital, and risk weighting of assets should be abandoned; capital requirements should be assigned on an institution-by-institution basis according to a regulatory (s, S) approach developed in the paper; a standard for prompt, corrective action is incorporated into the (s, S) approach. Journal: Journal of Economic Policy Reform Pages: 343-359 Issue: 4 Volume: 20 Year: 2017 Month: 10 X-DOI: 10.1080/17487870.2016.1181550 File-URL: http://hdl.handle.net/10.1080/17487870.2016.1181550 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jecprf:v:20:y:2017:i:4:p:343-359 Template-Type: ReDIF-Article 1.0 Author-Name: Andrea Bonaccorsi Author-X-Name-First: Andrea Author-X-Name-Last: Bonaccorsi Title: Addressing the disenchantment: universities and regional development in peripheral regions Abstract: The paper addresses the rising criticism to innovation policies that have assumed a direct and massive impact of universities in regional economies. It integrates the literature in economics of innovation, higher education, economic geography and regional studies. The paper shows why research excellence is considered a necessary condition for regional impact, why it is not sufficient, and whether there are substitutes. The Additional Material section includes an analysis, based on original data, on research excellence in universities in European peripheral regions. The policy implications call for a new approach to the role of universities. Journal: Journal of Economic Policy Reform Pages: 293-320 Issue: 4 Volume: 20 Year: 2017 Month: 10 X-DOI: 10.1080/17487870.2016.1212711 File-URL: http://hdl.handle.net/10.1080/17487870.2016.1212711 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jecprf:v:20:y:2017:i:4:p:293-320 Template-Type: ReDIF-Article 1.0 Author-Name: Omer Gokcekus Author-X-Name-First: Omer Author-X-Name-Last: Gokcekus Author-Name: Sertac Sonan Author-X-Name-First: Sertac Author-X-Name-Last: Sonan Title: Political contributions and corruption in the United States Abstract: The empirical evidence presented in this study indicates that political contributions and corruption are complements, rather than substitutes. Based on panel data for seven election cycles, regression results show that in the United States, political contributions and federal corruption convictions are positively correlated. Accordingly, we propose an alternative explanation for the relationship between political contributions and corruption: two components of a comprehensive strategy for rent-seeking. As long-term investments, political contributions influence legislators to change the rules of the game; as short-term investments, corruption influences public officials to sidestep the existing rules, in order to maximize the rent collected. Journal: Journal of Economic Policy Reform Pages: 360-372 Issue: 4 Volume: 20 Year: 2017 Month: 10 X-DOI: 10.1080/17487870.2016.1258312 File-URL: http://hdl.handle.net/10.1080/17487870.2016.1258312 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jecprf:v:20:y:2017:i:4:p:360-372 Template-Type: ReDIF-Article 1.0 Author-Name: The Editors Title: Editorial Board Journal: Journal of Economic Policy Reform Pages: ebi-ebi Issue: 4 Volume: 20 Year: 2017 Month: 10 X-DOI: 10.1080/17487870.2017.1394431 File-URL: http://hdl.handle.net/10.1080/17487870.2017.1394431 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jecprf:v:20:y:2017:i:4:p:ebi-ebi Template-Type: ReDIF-Article 1.0 Author-Name: Pablo Agnese Author-X-Name-First: Pablo Author-X-Name-Last: Agnese Author-Name: Jana Hromcová Author-X-Name-First: Jana Author-X-Name-Last: Hromcová Title: Bubble economics and structural change: the cases of Spain and France compared Abstract: This paper delves into the recent events that led to the formation of the housing bubble in Spain and the resulting structural change that is arguably needed to put the economy back into the right track. For this purpose, we calibrate a model with different equilibria descriptive of the labor markets in Spain and France, where the unemployment rates went from the same initial spot to very different levels. In addition to this, we run a counterfactual analysis that throws some more light on the performance of the Spanish labor market and the housing bubble. Our results suggest that the unemployment rate in Spain has jumped to much higher levels while switching between equilibria or, what is the same, because of structural change. Moreover, our counterfactuals indicate that, first, there has been an important misdirection of resources into the construction industry mainly fueled by excessively low real interest rates and, second, the Spanish labor reform has fallen short of its own goals. Journal: Journal of Economic Policy Reform Pages: 59-79 Issue: 1 Volume: 21 Year: 2018 Month: 1 X-DOI: 10.1080/17487870.2016.1213167 File-URL: http://hdl.handle.net/10.1080/17487870.2016.1213167 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jecprf:v:21:y:2018:i:1:p:59-79 Template-Type: ReDIF-Article 1.0 Author-Name: Amit Baran Chakrabarti Author-X-Name-First: Amit Baran Author-X-Name-Last: Chakrabarti Author-Name: Sougata Ray Author-X-Name-First: Sougata Author-X-Name-Last: Ray Title: An exploratory study on the impact of pro-market reforms on the Indian corporate sector Abstract: Pro-market reforms were expected to increase competition, improve efficiency and reduce agency costs by improving the institutional environment in emerging markets. In an attempt to establish the macro–micro linkages of these goals, this paper aims to analyse the impact of reforms on the performance of firms belonging to different ownership categories. We find that while state owned enterprises have shown signs of convergence, the performance of other domestic firms has stagnated. Meanwhile multinational subsidiaries have shown consistently better performance, raising questions on the motive and direction of reforms. We end by discussing the policy implications and avenues for future research. Journal: Journal of Economic Policy Reform Pages: 1-20 Issue: 1 Volume: 21 Year: 2018 Month: 1 X-DOI: 10.1080/17487870.2016.1235498 File-URL: http://hdl.handle.net/10.1080/17487870.2016.1235498 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jecprf:v:21:y:2018:i:1:p:1-20 Template-Type: ReDIF-Article 1.0 Author-Name: José Cuesta Author-X-Name-First: José Author-X-Name-Last: Cuesta Author-Name: Lucia Madrigal Author-X-Name-First: Lucia Author-X-Name-Last: Madrigal Author-Name: Emmanuel Skoufias Author-X-Name-First: Emmanuel Author-X-Name-Last: Skoufias Title: Poverty, disputes, and access to justice in two Indonesian provinces Abstract: This analysis explores the determinants behind the unequal access to justice services among poor Indonesians. The study analyzes the stock of observed past disputes by socioeconomic group and the demand for conflict resolution services for unresolved conflicts or “trajectories.” It also models the hypothetical demand of justice services for future disputes. Results suggest that unequal access to justice might go beyond the financial costs of seeking justice and also depends on individual preferences and community infrastructure. These findings warn against focusing exclusively on formal justice costs to improve the equal access of the poor to conflict resolution services. Journal: Journal of Economic Policy Reform Pages: 21-38 Issue: 1 Volume: 21 Year: 2018 Month: 1 X-DOI: 10.1080/17487870.2017.1283890 File-URL: http://hdl.handle.net/10.1080/17487870.2017.1283890 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jecprf:v:21:y:2018:i:1:p:21-38 Template-Type: ReDIF-Article 1.0 Author-Name: Chang-O Kim Author-X-Name-First: Chang-O Author-X-Name-Last: Kim Title: Can a temporary financial assistance scheme prevent a transition into poverty among individuals who experienced a life event crisis? Abstract: This article evaluates the impact of the Crisis Assistance Program for Basic Living (CAPBL), which was implemented in South Korea to assist at-risk individuals by providing temporary benefits. National administration data for 30,845 individuals covering 2009 to 2011 were analyzed to compare poverty transition time in recipients vs. non-recipients using a quasi-experimental design. The results indicate that the CAPBL did not prevent at-risk individuals from transitioning into poverty but, instead, facilitated individuals’ transition into welfare recipients. The findings suggest that the program must be fundamentally reformed to prevent individuals from being trapped in poverty. Journal: Journal of Economic Policy Reform Pages: 80-97 Issue: 1 Volume: 21 Year: 2018 Month: 1 X-DOI: 10.1080/17487870.2017.1294487 File-URL: http://hdl.handle.net/10.1080/17487870.2017.1294487 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jecprf:v:21:y:2018:i:1:p:80-97 Template-Type: ReDIF-Article 1.0 Author-Name: Carmen Fillat-Castejón Author-X-Name-First: Carmen Author-X-Name-Last: Fillat-Castejón Title: Restrictive or expansive selection: the uneven role of tariff structure in improving market access Abstract: We estimate the effect of tariff reforms on market access from the Doha Round until the Great Recession. Gravity estimates yield significant effects of the variation in tariff structure. The change in the Mercantilist Trade Restrictiveness Index reveals that the change in tariff dispersion reflects a restrictive selection counteracting the effect of average tariff reductions. Restrictiveness is concentrated in East Asia and Pacific while, in Latin America and Caribbean, selection is expansive. We illustrate reforms in China, finding strong restrictive selection. Simulations highlight reforms with unchanged dispersion for their larger improvement in market access and a simultaneous improvement in welfare. Journal: Journal of Economic Policy Reform Pages: 39-58 Issue: 1 Volume: 21 Year: 2018 Month: 1 X-DOI: 10.1080/17487870.2017.1305902 File-URL: http://hdl.handle.net/10.1080/17487870.2017.1305902 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jecprf:v:21:y:2018:i:1:p:39-58 Template-Type: ReDIF-Article 1.0 Author-Name: David G. Mayes Author-X-Name-First: David G. Author-X-Name-Last: Mayes Title: Banking union: the disadvantages of opportunism Abstract: The EU’s approach to what it describes as “banking union” is not what one would design with a clean slate. It reflects the political constraints and the path of history. This paper compares the institutional and operational structure of “banking union” that has been decided upon with a complete structure. It focuses on the distortions caused by a system based on the euro area, which excludes Europe’s most important financial market. It considers the difficulties posed for the Single Resolution arrangements and the European Deposit Insurance System by the continuing problem of the relation between weak banks and over-indebted sovereigns. Journal: Journal of Economic Policy Reform Pages: 132-143 Issue: 2 Volume: 21 Year: 2018 Month: 4 X-DOI: 10.1080/17487870.2017.1396899 File-URL: http://hdl.handle.net/10.1080/17487870.2017.1396899 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jecprf:v:21:y:2018:i:2:p:132-143 Template-Type: ReDIF-Article 1.0 Author-Name: Joachim Schild Author-X-Name-First: Joachim Author-X-Name-Last: Schild Title: Germany and France at cross purposes: the case of Banking Union Abstract: In the past, France and Germany were able to exercise leadership in history-making decisions in monetary cooperation, from the establishment of the EMS to EMU. In the case of Banking Union (BU), however, Germany and France turned out to be the main opponents with little common influence. Why could we not observe the familiar pattern of Franco-German co-leadership in building the BU? My explanation points to diverging views on the social purpose of a BU, the asymmetrical distribution of its costs and benefits for the two countries, highly prominent distributional conflicts and severe domestic constraints in Germany. These explanatory factors also account for the unfinished character of Banking Union. Journal: Journal of Economic Policy Reform Pages: 102-117 Issue: 2 Volume: 21 Year: 2018 Month: 4 X-DOI: 10.1080/17487870.2017.1396900 File-URL: http://hdl.handle.net/10.1080/17487870.2017.1396900 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jecprf:v:21:y:2018:i:2:p:102-117 Template-Type: ReDIF-Article 1.0 Author-Name: Shawn Donnelly Author-X-Name-First: Shawn Author-X-Name-Last: Donnelly Title: Liberal economic nationalism, financial stability, and Commission leniency in Banking Union Abstract: This paper demonstrates that protection and promotion of insolvent banks remains a high priority for national authorities in Europe, and the Commission partially accommodates these impulses in the desire to preserve national financial stability. Insolvent banks are kept alive despite Banking Union rules on resolution designed to facilitate their closure at the cost of private investors. Italian and Portuguese cases demonstrate that pressure to relax state aid rules is strongest where problems are the greatest. However, the long-term trend is still an incremental decrease in national leeway to protect and promote national bank ownership. Journal: Journal of Economic Policy Reform Pages: 159-173 Issue: 2 Volume: 21 Year: 2018 Month: 4 X-DOI: 10.1080/17487870.2017.1400433 File-URL: http://hdl.handle.net/10.1080/17487870.2017.1400433 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jecprf:v:21:y:2018:i:2:p:159-173 Template-Type: ReDIF-Article 1.0 Author-Name: Zdenek Kudrna Author-X-Name-First: Zdenek Author-X-Name-Last: Kudrna Author-Name: Sonja Puntscher Riekmann Author-X-Name-First: Sonja Author-X-Name-Last: Puntscher Riekmann Title: Harmonizing national options and discretions in the EU banking regulation Abstract: The European Central Bank strives to harmonize over 160 national options and discretions (O&Ds) that contribute to the fragmentation of banking union’s regulatory framework. National authorities seem prepared to accept it, despite previously insisting on the inclusion of all O&Ds into the EU legislation. We analyze a sample of O&D choices and their correspondence to cleavages pertinent to the political economy of EU banking. We find that the 11 post-communist member states use O&Ds more stringently to protect capital and liquidity in the local subsidiaries of foreign-own banks, which may complicate their potential opt-in to the banking union. Journal: Journal of Economic Policy Reform Pages: 144-158 Issue: 2 Volume: 21 Year: 2018 Month: 4 X-DOI: 10.1080/17487870.2017.1400438 File-URL: http://hdl.handle.net/10.1080/17487870.2017.1400438 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jecprf:v:21:y:2018:i:2:p:144-158 Template-Type: ReDIF-Article 1.0 Author-Name: The Editors Title: Special edition on constructing Banking Union: Introduction Journal: Journal of Economic Policy Reform Pages: 99-101 Issue: 2 Volume: 21 Year: 2018 Month: 4 X-DOI: 10.1080/17487870.2017.1412148 File-URL: http://hdl.handle.net/10.1080/17487870.2017.1412148 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jecprf:v:21:y:2018:i:2:p:99-101 Template-Type: ReDIF-Article 1.0 Author-Name: Ioannis G. Asimakopoulos Author-X-Name-First: Ioannis G. Author-X-Name-Last: Asimakopoulos Title: International law as a negotiation tool in Banking Union; the case of the Single Resolution Fund Abstract: EU’s response to the recent Euro-crisis has involved a mixture of EU and international law, with the latter being linked to all the arrangements that may have fiscal implications for national Member States. The SRF embodies all the controversial characteristics of Banking Union. This article illustrates the legal implications that this political choice creates, and how the interrelation between the SRM, the SRF and the ESM, allows leading economies, including Germany, to control the resolution framework both before and after crisis. This raises questions as to the direction that European Integration is taking and its highly nationalised character. Journal: Journal of Economic Policy Reform Pages: 118-131 Issue: 2 Volume: 21 Year: 2018 Month: 4 X-DOI: 10.1080/17487870.2018.1424631 File-URL: http://hdl.handle.net/10.1080/17487870.2018.1424631 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jecprf:v:21:y:2018:i:2:p:118-131 Template-Type: ReDIF-Article 1.0 Author-Name: David G. Mayes Author-X-Name-First: David G. Author-X-Name-Last: Mayes Title: Banking union: the problem of untried systems Abstract: This article explores the problems the EU and the SRB face in trying to implement a credible system for resolving banks without the use of taxpayer funds as a key part of banking union that avoids the doom loop between indebted banks and indebted sovereigns. It finds that without clear examples of how the system works in practice it is very difficult to provide convincing evidence of what will happen given the large number of options for bailing in, the continuing predilection for bailing out in some states and the lack of fiscal backstop for general threats to financial stability. Journal: Journal of Economic Policy Reform Pages: 178-189 Issue: 3 Volume: 21 Year: 2018 Month: 7 X-DOI: 10.1080/17487870.2017.1396901 File-URL: http://hdl.handle.net/10.1080/17487870.2017.1396901 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jecprf:v:21:y:2018:i:3:p:178-189 Template-Type: ReDIF-Article 1.0 Author-Name: Rosaria Cerrone Author-X-Name-First: Rosaria Author-X-Name-Last: Cerrone Title: Deposit guarantee reform in Europe: does European deposit insurance scheme increase banking stability? Abstract: The financial crisis led to reforms of regulation and supervision in Europe, including Deposit Guarantee Schemes. The new rules for DGSs define their position and interaction within the safety net. DGSs form part of a system to maintain and enhance financial stability. According to the Five Presidents’ Report a European Deposit Insurance Scheme should be the third pillar of the Banking Union. The paper gives a contribution to the on-going debate providing an assessment of the DGSs reform and its evolution towards EDIS. It explains key elements of the new rules for DGSs putting them in a systemic perspective. Journal: Journal of Economic Policy Reform Pages: 224-239 Issue: 3 Volume: 21 Year: 2018 Month: 7 X-DOI: 10.1080/17487870.2017.1400434 File-URL: http://hdl.handle.net/10.1080/17487870.2017.1400434 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jecprf:v:21:y:2018:i:3:p:224-239 Template-Type: ReDIF-Article 1.0 Author-Name: Katalin Mérő Author-X-Name-First: Katalin Author-X-Name-Last: Mérő Author-Name: Dóra Piroska Author-X-Name-First: Dóra Author-X-Name-Last: Piroska Title: Rethinking the allocation of macroprudential mandates within the Banking Union – a perspective from east of the BU Abstract: This paper argues that reforms of the Banking Union should be aimed at increasing efficiency of the single market as well enhance financial stability in the European Union. We argue that this can only be achieved if the Banking Union becomes more accommodative to non-Eurozone Central and Eastern European countries. It can be achieved if within BU institutions, the allocation of competencies reflects the subsidiary demands of CEE governments. Using the example of macroprudential regulation, we develop a number of reform options that could result in the better functioning of the Single Supervisory Mechanism and thus benefit all EU member states. Journal: Journal of Economic Policy Reform Pages: 240-256 Issue: 3 Volume: 21 Year: 2018 Month: 7 X-DOI: 10.1080/17487870.2017.1400435 File-URL: http://hdl.handle.net/10.1080/17487870.2017.1400435 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jecprf:v:21:y:2018:i:3:p:240-256 Template-Type: ReDIF-Article 1.0 Author-Name: Shawn Donnelly Author-X-Name-First: Shawn Author-X-Name-Last: Donnelly Title: Advocacy coalitions and the lack of deposit insurance in Banking Union Abstract: This paper shows that advocacy coalitions surrounding the establishment of a European Deposit Insurance System lead to spillovers into incompatible areas. Alternative spillovers were to increased public backstops and state aid. Intent to minimize costs, Germany and the Netherlands have pushed for wide-ranging risk reduction measures: that go to the core of financial practices in southern Europe, while Italy has pushed for greater public backstops and state aid within EMU. Unable to break the deadlock in Council, the EU awaits Basel Committee guidance on how to deal with sovereign risk exposures in its 2017–2018 work program. Journal: Journal of Economic Policy Reform Pages: 210-223 Issue: 3 Volume: 21 Year: 2018 Month: 7 X-DOI: 10.1080/17487870.2017.1400437 File-URL: http://hdl.handle.net/10.1080/17487870.2017.1400437 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jecprf:v:21:y:2018:i:3:p:210-223 Template-Type: ReDIF-Article 1.0 Author-Name: David Howarth Author-X-Name-First: David Author-X-Name-Last: Howarth Author-Name: Lucia Quaglia Author-X-Name-First: Lucia Author-X-Name-Last: Quaglia Title: The difficult construction of a European Deposit Insurance Scheme: a step too far in Banking Union? Abstract: The German Government refused to accept the development of a European Deposit Insurance Scheme (EDIS) for Banking Union member states. Publicly, the German Government was preoccupied with the creation of a moral hazard that common funds would create for banks in those participating countries that had weak banking systems. This paper argues that to understand German moral hazard concerns it is necessary to look beyond the ideational – notably concerns stemming from German Ordo-liberalism – and focus on the existing national institutional arrangements that the German Government sought to protect. German moral hazard concerns stemmed from the fear that well-funded German deposit guarantee schemes (DGS) – especially those of small savings and cooperative banks – could be tapped to compensate for underfunded (and largely ex post funded) DGS in other member states. We thus demonstrate that the difficulties facing the construction of an EDIS owe to the weakness of the previously agreed harmonization of national DGS. This failure to harmonize schemes beyond a low minimal standard can be explained through an analysis focused on national systems. Different existing national DGS stem from the different configuration of national banking systems, the longstanding relationships among national banks and well-entrenched regulatory frameworks. Journal: Journal of Economic Policy Reform Pages: 190-209 Issue: 3 Volume: 21 Year: 2018 Month: 7 X-DOI: 10.1080/17487870.2017.1402682 File-URL: http://hdl.handle.net/10.1080/17487870.2017.1402682 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jecprf:v:21:y:2018:i:3:p:190-209 Template-Type: ReDIF-Article 1.0 Author-Name: David Howarth Author-X-Name-First: David Author-X-Name-Last: Howarth Author-Name: Joachim Schild Author-X-Name-First: Joachim Author-X-Name-Last: Schild Title: Special edition on reforming Banking Union: introduction Journal: Journal of Economic Policy Reform Pages: 175-177 Issue: 3 Volume: 21 Year: 2018 Month: 7 X-DOI: 10.1080/17487870.2018.1430730 File-URL: http://hdl.handle.net/10.1080/17487870.2018.1430730 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jecprf:v:21:y:2018:i:3:p:175-177 Template-Type: ReDIF-Article 1.0 Author-Name: Christopher A. Hartwell Author-X-Name-First: Christopher A. Author-X-Name-Last: Hartwell Title: The effect of political volatility on capital markets in EU accession and neighborhood countries Abstract: Political instability has the potential to disrupt financial markets. But how do political institutions affect financial movements in an environment where all institutions are in flux? This paper looks at the effects of formal and informal political volatility in the new EU countries of central and eastern Europe, in the Eastern Neighborhood, and farther afield in Central Asia to answer this question. Using asymmetric GARCH modeling on monthly data, I find that informal political volatility has a significant negative effect on stock returns, while formal political institutions generate much higher financial volatility than changes in monetary policy. Journal: Journal of Economic Policy Reform Pages: 260-280 Issue: 4 Volume: 21 Year: 2018 Month: 10 X-DOI: 10.1080/17487870.2017.1311793 File-URL: http://hdl.handle.net/10.1080/17487870.2017.1311793 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jecprf:v:21:y:2018:i:4:p:260-280 Template-Type: ReDIF-Article 1.0 Author-Name: Roman Horvath Author-X-Name-First: Roman Author-X-Name-Last: Horvath Title: Financial market fragmentation and monetary transmission in the euro area: what do we know? Abstract: We provide a survey on the literature examining financial market fragmentation in the euro area and discuss the policy options how to reduce it. The fragmentation has increased markedly since the outbreak of the global financial crisis in 2007. It declined somewhat from late 2012 onwards, but is still above the pre-crisis level. Interest rate pass-through has become less efficient primarily because of increased mark-ups and, to a certain extent, the lower responsiveness of bank interest rates to policy rates. The effectiveness of interest rate pass-through has become more heterogeneous across euro area countries, making a common monetary policy more difficult. The unconventional monetary policy conducted by the European Central Bank has reduced financial market fragmentation notably; however, this policy was not without side effects. Enhancing financial and fiscal stability in the euro area is key for the efficient functioning of the monetary transmission mechanism. Journal: Journal of Economic Policy Reform Pages: 319-334 Issue: 4 Volume: 21 Year: 2018 Month: 10 X-DOI: 10.1080/17487870.2017.1330686 File-URL: http://hdl.handle.net/10.1080/17487870.2017.1330686 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jecprf:v:21:y:2018:i:4:p:319-334 Template-Type: ReDIF-Article 1.0 Author-Name: Christopher A. Hartwell Author-X-Name-First: Christopher A. Author-X-Name-Last: Hartwell Author-Name: Elias Soukiazis Author-X-Name-First: Elias Author-X-Name-Last: Soukiazis Author-Name: Eva Muchová Author-X-Name-First: Eva Author-X-Name-Last: Muchová Author-Name: Roman Horváth Author-X-Name-First: Roman Author-X-Name-Last: Horváth Title: European integration in the aftermath of the debt crisis Journal: Journal of Economic Policy Reform Pages: 257-259 Issue: 4 Volume: 21 Year: 2018 Month: 10 X-DOI: 10.1080/17487870.2017.1345315 File-URL: http://hdl.handle.net/10.1080/17487870.2017.1345315 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jecprf:v:21:y:2018:i:4:p:257-259 Template-Type: ReDIF-Article 1.0 Author-Name: Maria Siranova Author-X-Name-First: Maria Author-X-Name-Last: Siranova Author-Name: Marek Radvanský Author-X-Name-First: Marek Author-X-Name-Last: Radvanský Title: Performance of the Macroeconomic Imbalance Procedure in light of historical experience in the CEE region Abstract: This article applies set of 24 baseline and auxiliary indicators included into the Macroeconomic Imbalance Procedure framework on the conditions of 17 CEE countries to assess their predictive power given the policy pre-determined and optimal thresholds for the period 1991–2014. Our results suggest that the optimal official thresholds might either be excessively too accommodative (public and private, total or external debt levels), overly conservative (current account balance, export market share and nominal unit labour costs), or with less informative value (labour market characteristics) for set of transition economies. Indicators with higher predictive power belong predominantly to the group of external imbalances indicators. Journal: Journal of Economic Policy Reform Pages: 335-352 Issue: 4 Volume: 21 Year: 2018 Month: 10 X-DOI: 10.1080/17487870.2017.1364642 File-URL: http://hdl.handle.net/10.1080/17487870.2017.1364642 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jecprf:v:21:y:2018:i:4:p:335-352 Template-Type: ReDIF-Article 1.0 Author-Name: Elias Soukiazis Author-X-Name-First: Elias Author-X-Name-Last: Soukiazis Author-Name: Eva Muchova Author-X-Name-First: Eva Author-X-Name-Last: Muchova Author-Name: Pedro A. Cerqueira Author-X-Name-First: Pedro A. Author-X-Name-Last: Cerqueira Author-Name: Micaela Antunes Author-X-Name-First: Micaela Author-X-Name-Last: Antunes Title: What can eastern European countries learn from the Slovak economy? A twin deficit growth approach Abstract: This paper applies an extended growth model to the Slovak economy and explains the potential pitfalls that a transition economy faces on the way to converging with other advanced European countries. Our empirical analysis shows that Slovakia grew at a higher rate than that allowed by the balance-of-payments equilibrium rate and that this is consistent with the accumulation of trade deficits over time. A scenarios analysis shows that improving trade competitiveness, changing import and export shares toward a current account balance, and financing the economy at a lower cost will be the most successful ways to achieve higher growth. Journal: Journal of Economic Policy Reform Pages: 301-318 Issue: 4 Volume: 21 Year: 2018 Month: 10 X-DOI: 10.1080/17487870.2017.1374864 File-URL: http://hdl.handle.net/10.1080/17487870.2017.1374864 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jecprf:v:21:y:2018:i:4:p:301-318 Template-Type: ReDIF-Article 1.0 Author-Name: Alberto Bagnai Author-X-Name-First: Alberto Author-X-Name-Last: Bagnai Author-Name: Christian Alexander Mongeau Ospina Author-X-Name-First: Christian Alexander Author-X-Name-Last: Mongeau Ospina Title: Monetary integration vs. real disintegration: single currency and productivity divergence in the euro area Abstract: Productivity slowdown plays a prominent role in the build-up of the euro area crisis. This phenomenon affected member countries asymmetrically, causing divergence in their productivity trends. Recent research traces this divergence back to monetary integration. After reviewing the arguments that link real “disintegration” of the euro area to its monetary integration, we assess them empirically by modelling the evolution of labour productivity using a panel of sectorial data. The results indicate that monetary unification may actually have fostered divergence in productivity trends, and suggest some economic policy measures that could prevent further divergence. Journal: Journal of Economic Policy Reform Pages: 353-367 Issue: 4 Volume: 21 Year: 2018 Month: 10 X-DOI: 10.1080/17487870.2017.1403755 File-URL: http://hdl.handle.net/10.1080/17487870.2017.1403755 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jecprf:v:21:y:2018:i:4:p:353-367 Template-Type: ReDIF-Article 1.0 Author-Name: Maritta Paloviita Author-X-Name-First: Maritta Author-X-Name-Last: Paloviita Author-Name: Pasi Ikonen Author-X-Name-First: Pasi Author-X-Name-Last: Ikonen Title: Real-time uncertainty in budget planning: evidence from euro area countries Abstract: Using rich panel data including potential output for euro area countries, we analyse budget balance forecasts and their errors. We find that budget balance forecasts are systematically biased and subject to mean reversion (tendency towards more balanced budgets). A robust result is that errors in budget balance nowcasts contribute to errors in budget balance forecasts. In addition, we find that nowcasted macroeconomic conditions can affect over-optimism in budget balance forecasts. Overall, our results emphasize the central role of nowcasting in the EU fiscal framework. Journal: Journal of Economic Policy Reform Pages: 281-300 Issue: 4 Volume: 21 Year: 2018 Month: 10 X-DOI: 10.1080/17487870.2018.1431126 File-URL: http://hdl.handle.net/10.1080/17487870.2018.1431126 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jecprf:v:21:y:2018:i:4:p:281-300 Template-Type: ReDIF-Article 1.0 Author-Name: The Editors Title: Editorial Board Journal: Journal of Economic Policy Reform Pages: ebi-ebi Issue: 4 Volume: 21 Year: 2018 Month: 10 X-DOI: 10.1080/17487870.2018.1533759 File-URL: http://hdl.handle.net/10.1080/17487870.2018.1533759 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jecprf:v:21:y:2018:i:4:p:ebi-ebi Template-Type: ReDIF-Article 1.0 Author-Name: Edyta Marcinkiewicz Author-X-Name-First: Edyta Author-X-Name-Last: Marcinkiewicz Author-Name: Filip Chybalski Author-X-Name-First: Filip Author-X-Name-Last: Chybalski Title: A new proposal of pension regimes typology: empirical analysis of the OECD countries Abstract: In the paper, we present a new typology of pension regimes based on two main dimensions: the extent of involvement of the state and the market, and the role of voluntary schemes. We propose three theoretical pension regimes. The study proves that our theoretical typology is also consistent with empirical pension systems in OECD countries. In order to group them into the similar pension models, we employ multivariate statistical analysis. As a result of our empirical research, the regimes distinguished in the theoretical framework have found their counterparts in the clusters of real pension systems operating in 30 countries. Journal: Journal of Economic Policy Reform Pages: 84-99 Issue: 1 Volume: 22 Year: 2019 Month: 1 X-DOI: 10.1080/17487870.2016.1276454 File-URL: http://hdl.handle.net/10.1080/17487870.2016.1276454 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jecprf:v:22:y:2019:i:1:p:84-99 Template-Type: ReDIF-Article 1.0 Author-Name: Samina Naveed Author-X-Name-First: Samina Author-X-Name-Last: Naveed Author-Name: Zafar Mahmood Author-X-Name-First: Zafar Author-X-Name-Last: Mahmood Title: Impact of domestic financial liberalization on economic growth in Pakistan Abstract: This paper attempts to investigate the domestic components of the financial liberalization process in Pakistan and develops an index of domestic financial liberalization capturing the important dimensions of reform process. Employing the multivariate co-integration technique and error-correction mechanism, the results indicate a positive impact of the index on economic growth in the long run, while its short run impact is found to be negative. Empirical findings highlight the importance of further financial deepening and financial intermediation, in a conducive environment, that are essential components to successfully implement reforms for growth stimulation. Journal: Journal of Economic Policy Reform Pages: 16-34 Issue: 1 Volume: 22 Year: 2019 Month: 1 X-DOI: 10.1080/17487870.2017.1305901 File-URL: http://hdl.handle.net/10.1080/17487870.2017.1305901 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jecprf:v:22:y:2019:i:1:p:16-34 Template-Type: ReDIF-Article 1.0 Author-Name: Madeleine O. Hosli Author-X-Name-First: Madeleine O. Author-X-Name-Last: Hosli Author-Name: Thomas Dörfler Author-X-Name-First: Thomas Author-X-Name-Last: Dörfler Title: Why is change so slow? Assessing prospects for United Nations Security Council reform Abstract: The article explores how changed patterns of UN membership affected the prospects for UN Security Council institutional reform. First, we outline a theoretical framework based on path dependency, veto player analysis and social choice theory. Second, we offer calculations of decision probability and show that a higher voting threshold lowers chances of winning coalitions in a non-linear fashion. Third, we explore the specific decision-making procedures for UNSC reform and which actors can block reform. We conclude that not only diverging preferences, but that hurdles established early on combined with membership growth have ‘locked in’ the current institutional arrangement. Journal: Journal of Economic Policy Reform Pages: 35-50 Issue: 1 Volume: 22 Year: 2019 Month: 1 X-DOI: 10.1080/17487870.2017.1305903 File-URL: http://hdl.handle.net/10.1080/17487870.2017.1305903 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jecprf:v:22:y:2019:i:1:p:35-50 Template-Type: ReDIF-Article 1.0 Author-Name: Caner Bakir Author-X-Name-First: Caner Author-X-Name-Last: Bakir Title: How do mega-bank merger policy and regulations contribute to financial stability? Evidence from Australia and Canada Abstract: Although the role of financial regulatory failures in the global financial crisis (GFC) has been explored extensively in the post-GFC literature, our knowledge of the role of bank merger and takeover policy and regulation in reinforcing financial stability is limited. Based on an exploratory case study of Australia, which is examined in comparison to Canada, this article argues that competition policy and regulation contributed to financial stability by insulating the largest Australian and Canadian banks from domestic or foreign hostile takeover threats, and by limiting their asset size, and thus their internationalization and interconnections with the global banking community. Journal: Journal of Economic Policy Reform Pages: 1-15 Issue: 1 Volume: 22 Year: 2019 Month: 1 X-DOI: 10.1080/17487870.2017.1307112 File-URL: http://hdl.handle.net/10.1080/17487870.2017.1307112 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jecprf:v:22:y:2019:i:1:p:1-15 Template-Type: ReDIF-Article 1.0 Author-Name: Shenghao Gao Author-X-Name-First: Shenghao Author-X-Name-Last: Gao Author-Name: Liming Wang Author-X-Name-First: Liming Author-X-Name-Last: Wang Author-Name: Ningyue Liu Author-X-Name-First: Ningyue Author-X-Name-Last: Liu Author-Name: Min Zhang Author-X-Name-First: Min Author-X-Name-Last: Zhang Title: Fiscal decentralization and corporate investment: empirical evidence from China Abstract: This paper examines the effect of fiscal decentralization on levels and efficiency of corporate investment. The results indicate that as the extent of local government fiscal decentralization increases, the level of new investment by firms under their jurisdiction rises. Furthermore, fiscal decentralization has an impact on corporate investment by aggravating over-investment rather than alleviating under-investment, leading to a situation whereby fiscal decentralization is negatively associated with investment efficiency at the level of the firm. Finally, the impact of fiscal decentralization on over-investment, under-investment and investment efficiency is not different between state-owned enterprises and non-state-owned enterprises, suggesting that economic leverages are the dominant government intervention measures. The findings imply that fiscal decentralization is another determinant of firm-level investment and corporate investment efficiency, which broadens the existing literature on the economic consequence of fiscal decentralization, resulting in important implications for policy-making. Journal: Journal of Economic Policy Reform Pages: 51-68 Issue: 1 Volume: 22 Year: 2019 Month: 1 X-DOI: 10.1080/17487870.2017.1310042 File-URL: http://hdl.handle.net/10.1080/17487870.2017.1310042 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jecprf:v:22:y:2019:i:1:p:51-68 Template-Type: ReDIF-Article 1.0 Author-Name: Dirk Bursian Author-X-Name-First: Dirk Author-X-Name-Last: Bursian Author-Name: Nikolai Stähler Author-X-Name-First: Nikolai Author-X-Name-Last: Stähler Title: Macroeconomic effects of increased wage flexibility in EMU Abstract: We analyse the macroeconomic effects of a more flexible wage setting process in the euro area. Reducing wage rigidities leads to far greater volatility in nominal wages, which ultimately translates into somewhat higher output and consumption volatility, while employment volatility is hardly affected. Even though volatility increases, the persistence of shocks is significantly reduced, which improves welfare of the union as a whole. We can show in a counterfactual analysis that, with lower wage rigidities, real GDP in the rest of the euro area would be higher and the unemployment rate lower compared to recent levels. Journal: Journal of Economic Policy Reform Pages: 69-83 Issue: 1 Volume: 22 Year: 2019 Month: 1 X-DOI: 10.1080/17487870.2017.1316723 File-URL: http://hdl.handle.net/10.1080/17487870.2017.1316723 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jecprf:v:22:y:2019:i:1:p:69-83 Template-Type: ReDIF-Article 1.0 Author-Name: Emanuele Bacchiocchi Author-X-Name-First: Emanuele Author-X-Name-Last: Bacchiocchi Author-Name: Matteo Ferraris Author-X-Name-First: Matteo Author-X-Name-Last: Ferraris Author-Name: Massimo Florio Author-X-Name-First: Massimo Author-X-Name-Last: Florio Author-Name: Daniela Vandone Author-X-Name-First: Daniela Author-X-Name-Last: Vandone Title: State-owned banks in the market for corporate control Abstract: We study the pre-deal characteristics of state-owned banks acquiring other companies, relative to their private counterparts. We build a unique international data-set of 3682 deals in the years 2003–2013. Econometric results highlight that those state-owned banks that are acting as acquirers have an ex-ante performance similar to their private benchmarks. The results are driven by the role of development banks. This new finding points to the recent evolution of some types of contemporary state-owned financial players. Journal: Journal of Economic Policy Reform Pages: 120-147 Issue: 2 Volume: 22 Year: 2019 Month: 4 X-DOI: 10.1080/17487870.2017.1336437 File-URL: http://hdl.handle.net/10.1080/17487870.2017.1336437 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jecprf:v:22:y:2019:i:2:p:120-147 Template-Type: ReDIF-Article 1.0 Author-Name: Alfredo Marvao Pereira Author-X-Name-First: Alfredo Marvao Author-X-Name-Last: Pereira Author-Name: Rui Marvao Pereira Author-X-Name-First: Rui Marvao Author-X-Name-Last: Pereira Title: Achieving the triple dividend in Portugal: a dynamic general-equilibrium evaluation of a carbon tax indexed to emissions trading Abstract: Using a dynamic general equilibrium model, we simulate the environmental, economic, and budgetary effects in Portugal of a new carbon tax indexed to the carbon price in the European Union’s Emissions Trading System market. Through careful recycling of the carbon tax revenues to finance lower personal income taxes, lower Social Security contributions, and higher investment tax credits – in particular when changes are directed at promoting energy efficiency – we show that it is possible to design a carbon tax reform that boosts economic growth and strengthens fiscal consolidation. These results served as the basis for a new carbon tax eventually approved by the Portuguese Parliament. Journal: Journal of Economic Policy Reform Pages: 148-163 Issue: 2 Volume: 22 Year: 2019 Month: 4 X-DOI: 10.1080/17487870.2017.1348298 File-URL: http://hdl.handle.net/10.1080/17487870.2017.1348298 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jecprf:v:22:y:2019:i:2:p:148-163 Template-Type: ReDIF-Article 1.0 Author-Name: Ali Aşkın Çulha Author-X-Name-First: Ali Aşkın Author-X-Name-Last: Çulha Title: Asymmetric government expenditure: a comparison of advanced and developing countries Abstract: This paper studies the responsiveness of government expenditures to business cycles and introduces an index of asymmetric government expenditures using panel data for advanced and developing countries during the period 1981–2014. The empirical findings show that government expenditures tend to be procyclical in developing countries but acyclical in advanced economies. In addition, it is found that government expenditures respond in a countercyclical manner during bad times in advanced countries, but in a strongly procyclical manner during good times in developing countries. The index of asymmetric government expenditures for developing countries tends to be higher than that of the advanced countries. Journal: Journal of Economic Policy Reform Pages: 164-183 Issue: 2 Volume: 22 Year: 2019 Month: 4 X-DOI: 10.1080/17487870.2017.1374863 File-URL: http://hdl.handle.net/10.1080/17487870.2017.1374863 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jecprf:v:22:y:2019:i:2:p:164-183 Template-Type: ReDIF-Article 1.0 Author-Name: Julita Łukomska Author-X-Name-First: Julita Author-X-Name-Last: Łukomska Author-Name: Katarzyna Szmigiel-Rawska Author-X-Name-First: Katarzyna Author-X-Name-Last: Szmigiel-Rawska Title: Inter-local relations and trans-scaling through finance in Poland Abstract: Inter-local cooperation is difficult to measure. In Poland, however, the data-set concerning financial transfers between local government budgets (one of the most popular quantitative measures of cooperation) has never been described in scientific literature. This paper aims at contributing to fill this gap. On the basis of the budget expenditures of all Polish local governments, we applied two research methods: OLS regression and Heckman two-stage regression. The results show that the decision whether to get into cooperation, and the decision on the extent of involvement are driven by different factors. Journal: Journal of Economic Policy Reform Pages: 184-201 Issue: 2 Volume: 22 Year: 2019 Month: 4 X-DOI: 10.1080/17487870.2017.1380525 File-URL: http://hdl.handle.net/10.1080/17487870.2017.1380525 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jecprf:v:22:y:2019:i:2:p:184-201 Template-Type: ReDIF-Article 1.0 Author-Name: Mariana Mazzucato Author-X-Name-First: Mariana Author-X-Name-Last: Mazzucato Author-Name: Victor Roy Author-X-Name-First: Victor Author-X-Name-Last: Roy Title: Rethinking value in health innovation: from mystifications towards prescriptions Abstract: Debates over value in health innovation in the U.S. and Europe have become increasingly dominated by “value-based pricing”. We examine this prevailing narrative and its weaknesses and then present an alternative framework for rethinking value in health. Drawing on scholarship from the political economy of innovation, we argue that value in health must be considered in terms of both value creation as a collective process amongst public and private actors, as well as value extraction that occurs due to financialization. In building this alternative framework, we pose three questions that present areas for further research and public policy change. Journal: Journal of Economic Policy Reform Pages: 101-119 Issue: 2 Volume: 22 Year: 2019 Month: 4 X-DOI: 10.1080/17487870.2018.1509712 File-URL: http://hdl.handle.net/10.1080/17487870.2018.1509712 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jecprf:v:22:y:2019:i:2:p:101-119 Template-Type: ReDIF-Article 1.0 Author-Name: John-Paul Salter Author-X-Name-First: John-Paul Author-X-Name-Last: Salter Title: The multiple accountabilities of the European Banking Authority Abstract: The paper investigates the features, and relative strengths of the various accountability structures which exist around the European Banking Authority (EBA), studying how its hybrid nature makes for a set of complex and overlapping relationships. Drawing on interviews with EBA staff and industry practitioners, the paper exposes the tensions between these various channels of accountability, and comments on how they undermine the agency’s efficacy. It concludes with some suggestions for reforms to this arrangement, with the aim of improving the agency’s ability to operate. Journal: Journal of Economic Policy Reform Pages: 257-272 Issue: 3 Volume: 22 Year: 2019 Month: 7 X-DOI: 10.1080/17487870.2017.1400436 File-URL: http://hdl.handle.net/10.1080/17487870.2017.1400436 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jecprf:v:22:y:2019:i:3:p:257-272 Template-Type: ReDIF-Article 1.0 Author-Name: David Howarth Author-X-Name-First: David Author-X-Name-Last: Howarth Author-Name: Joachim Schild Author-X-Name-First: Joachim Author-X-Name-Last: Schild Title: Reinforcing supranational bank regulation, supervision, support and resolution in Europe: introduction Journal: Journal of Economic Policy Reform Pages: 203-207 Issue: 3 Volume: 22 Year: 2019 Month: 7 X-DOI: 10.1080/17487870.2018.1424519 File-URL: http://hdl.handle.net/10.1080/17487870.2018.1424519 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jecprf:v:22:y:2019:i:3:p:203-207 Template-Type: ReDIF-Article 1.0 Author-Name: Pablo de Andrés Author-X-Name-First: Pablo Author-X-Name-Last: de Andrés Author-Name: Rodrigo Reig Author-X-Name-First: Rodrigo Author-X-Name-Last: Reig Author-Name: Eleuterio Vallelado Author-X-Name-First: Eleuterio Author-X-Name-Last: Vallelado Title: European banks’ executive remuneration under the new European Union regulation Abstract: We review how the new European regulation of bank executive compensation could affect the future of banking in Europe. Although there is no conclusive empirical evidence on the relation between bank executive remuneration and the financial crisis, authorities have intensively regulated the compensation of bank managers to eliminate risk-taking incentives in the financial industry. However, the new regulation could have unintended consequences of creating an adverse selection problem at European banks, reducing the number of best-performing managers available for European banks, and motivating an excessive increase in fixed remuneration over total remuneration, altering the way incentive systems work. Journal: Journal of Economic Policy Reform Pages: 208-225 Issue: 3 Volume: 22 Year: 2019 Month: 7 X-DOI: 10.1080/17487870.2018.1424630 File-URL: http://hdl.handle.net/10.1080/17487870.2018.1424630 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jecprf:v:22:y:2019:i:3:p:208-225 Template-Type: ReDIF-Article 1.0 Author-Name: Jakub Gren Author-X-Name-First: Jakub Author-X-Name-Last: Gren Title: Building responsive supervision over smaller banks in Europe: an insight from the Principal-Agent perspective Abstract: The Single Supervisory Mechanism (SSM) is an administrative arrangement of national assistance to the ECB in exercising its exclusive supervisory competence. It sets two systems of assistance: ECB Direct Supervision (for large banks) and Indirect Supervision (for smaller and medium-sized banks) supervision. This paper analyzes dynamics between the ECB Banking Supervision as the principal and NCAs as its agents in the system of ECB Indirect Supervision. It identifies six formal (statutory) accountability and control mechanisms which are put at the ECB’s disposal to monitor the way how the NCAs carry SSM supervisory tasks when exercising the ECB’s exclusive supervisory competences under the SSM Regulation. Journal: Journal of Economic Policy Reform Pages: 242-256 Issue: 3 Volume: 22 Year: 2019 Month: 7 X-DOI: 10.1080/17487870.2018.1450145 File-URL: http://hdl.handle.net/10.1080/17487870.2018.1450145 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jecprf:v:22:y:2019:i:3:p:242-256 Template-Type: ReDIF-Article 1.0 Author-Name: Vanessa Endrejat Author-X-Name-First: Vanessa Author-X-Name-Last: Endrejat Author-Name: Matthias Thiemann Author-X-Name-First: Matthias Author-X-Name-Last: Thiemann Title: Balancing market liquidity: Bank Structural Reform caught between growth and stability Abstract: The European Commission’s proposal for a Bank Structural Reform (BSR) aimed at increasing banks’ resolvability through separating risky trading activities from deposit-taking institutions. In contrast to initial plans, the final proposal exempted market-making activities of banks. This exemption, we argue, was brought about by the Commission’s discursive framing of the BSR as a balancing act between stability and growth. Coupled with the incapacity to unambiguously measure the effects of the reform on market liquidity and on growth, this pushed the assessment of market-making from the technical to the political realm, leading to a reproduction of the prevalent market-based banking system. Journal: Journal of Economic Policy Reform Pages: 226-241 Issue: 3 Volume: 22 Year: 2019 Month: 7 X-DOI: 10.1080/17487870.2018.1451751 File-URL: http://hdl.handle.net/10.1080/17487870.2018.1451751 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jecprf:v:22:y:2019:i:3:p:226-241 Template-Type: ReDIF-Article 1.0 Author-Name: Florian Brandt Author-X-Name-First: Florian Author-X-Name-Last: Brandt Author-Name: Matthias Wohlfahrt Author-X-Name-First: Matthias Author-X-Name-Last: Wohlfahrt Title: A common backstop to the Single Resolution Fund Abstract: During the establishment of the Banking Union it has been agreed to develop a common backstop to the Single Resolution Fund. The following key principles constitute the point of departure of this paper:1. Fiscal neutrality in the medium term;2. Instrument of last resort;3. Equivalent treatment across all Member States in the Banking Union; and4. No costs for non-Banking Union Member States.For each aspect the legal and regulatory background as well as the economic implications are provided. They significantly influence the common backstop’s final design and the choice of an adequate provider for the steady state. Journal: Journal of Economic Policy Reform Pages: 291-306 Issue: 3 Volume: 22 Year: 2019 Month: 7 X-DOI: 10.1080/17487870.2018.1482745 File-URL: http://hdl.handle.net/10.1080/17487870.2018.1482745 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jecprf:v:22:y:2019:i:3:p:291-306 Template-Type: ReDIF-Article 1.0 Author-Name: Ute Lettanie Author-X-Name-First: Ute Author-X-Name-Last: Lettanie Title: Consultations and the ECB as prudential regulator: enhancing legitimacy? Abstract: This paper examines whether the ECB’s consultations, imposed by the SSM Regulation, enhance legitimacy in terms of openness, transparency, inclusiveness, efficacy and judicial accountability. The paper argues that the ECB has, in general, established a solid consultation practice. However, although there is a need for efficacy, the lack of a profound feedback statement, the low participation rate of groups other than the sector actors, and weak judicial review can be considered to constitute its Achilles’ heel. Thus, while in theory the consultation obligation leads to more throughput legitimacy, reality has turned out to be far more complex. Journal: Journal of Economic Policy Reform Pages: 273-290 Issue: 3 Volume: 22 Year: 2019 Month: 7 X-DOI: 10.1080/17487870.2018.1551138 File-URL: http://hdl.handle.net/10.1080/17487870.2018.1551138 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jecprf:v:22:y:2019:i:3:p:273-290 Template-Type: ReDIF-Article 1.0 Author-Name: Tolga Aksoy Author-X-Name-First: Tolga Author-X-Name-Last: Aksoy Title: Structural reforms and growth in developing countries Abstract: This paper investigates the effects of structural reforms on real per capita GDP in the short and long-run by employing Pooled Mean Group approach. I find that during the period 1973–2006, there is a positive long-run relationship between international trade reform, financial (capital account, and domestic finance) reforms and real per capita GDP. My results also indicate that in the short-run, financially more open economies suffer more from international trade and domestic financial reforms. More importantly, the adverse effects of reforms in the short-run can be mitigated by improving property rights and contract enforcement. Journal: Journal of Economic Policy Reform Pages: 325-350 Issue: 4 Volume: 22 Year: 2019 Month: 10 X-DOI: 10.1080/17487870.2018.1424629 File-URL: http://hdl.handle.net/10.1080/17487870.2018.1424629 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jecprf:v:22:y:2019:i:4:p:325-350 Template-Type: ReDIF-Article 1.0 Author-Name: Manoel Bittencourt Author-X-Name-First: Manoel Author-X-Name-Last: Bittencourt Title: Young democracies and government debt: evidence from South America Abstract: I test the hypothesis that when democracies are young, or still fragile and unconsolidated, government debt tends to increase, presumably because of increased demand for redistribution, or to buy out the electorate, so that democracy becomes acceptable and “the only game in town”. I use a sample of all South American young democracies during the 1970–2007 period and the results, based on dynamic panel time-series analysis, suggest that those young democracies are indeed associated with larger government debt. Furthermore, I test the hypothesis that the outgoing dictatorships of the day bequeathed the young democracies with large government debt. This hypothesis is not confirmed by the analysis. Lastly, there is no evidence that, as those democracies mature over time, government debt tends to decrease. Given how I conduct the exercise, that is, the nature of the sample, the methodology I use and the counterfactuals I run, and also that there are always new episodes of democratisation being experienced by different countries around the world, with some being economically successful and others less so, the results I report are informative of what to expect in terms of government debt during political transitions into democracy when particular institutions are still not in place. Journal: Journal of Economic Policy Reform Pages: 351-368 Issue: 4 Volume: 22 Year: 2019 Month: 10 X-DOI: 10.1080/17487870.2018.1429272 File-URL: http://hdl.handle.net/10.1080/17487870.2018.1429272 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jecprf:v:22:y:2019:i:4:p:351-368 Template-Type: ReDIF-Article 1.0 Author-Name: Dong-Hyeon Kim Author-X-Name-First: Dong-Hyeon Author-X-Name-Last: Kim Author-Name: Ting-Cih Chen Author-X-Name-First: Ting-Cih Author-X-Name-Last: Chen Author-Name: Shu-Chin Lin Author-X-Name-First: Shu-Chin Author-X-Name-Last: Lin Title: Finance and unemployment: new panel evidence Abstract: The effect of credit market imperfections on unemployment is largely investigated in the context of financial crises. This paper shifts the focus toward financial development and structure in a panel of advanced and developing countries. Some important findings emerge. Unemployment increases with financial development and concentration in banking markets but decreases with market orientation, the effect is stronger in magnitudes for young workers than female ones. More rigid market regulation increases unemployment. These findings are particularly pronounced for countries with higher income, better developed financial sectors, lower income inequality, greater trade openness, higher democracy, and common-law systems. Journal: Journal of Economic Policy Reform Pages: 307-324 Issue: 4 Volume: 22 Year: 2019 Month: 10 X-DOI: 10.1080/17487870.2018.1451750 File-URL: http://hdl.handle.net/10.1080/17487870.2018.1451750 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jecprf:v:22:y:2019:i:4:p:307-324 Template-Type: ReDIF-Article 1.0 Author-Name: Sebastian Dullien Author-X-Name-First: Sebastian Author-X-Name-Last: Dullien Author-Name: Barbara Fritz Author-X-Name-First: Barbara Author-X-Name-Last: Fritz Author-Name: Laurissa Mühlich Author-X-Name-First: Laurissa Author-X-Name-Last: Mühlich Title: The IMF to the rescue: did Greece benefit from the fund’s experience in dealing with highly indebted countries? Abstract: The paper analyses how the IMF brought its experience concerning the distinction between liquidity and solvency crises and their adequate handling gained during earlier crises into the troika’s approach to Greece. We link multiple equilibria models with the IMF’s experience gained in Latin America in the 2000s and subsequent changes in the IMF’s policy guidelines. We show that the IMF changed its approach after the Argentinian crisis but ignored some of these insights in the case of Greece. Hence, we argue that the inclusion of the IMF in Europe’s crisis-fighting did not completely deliver what had been hoped for. Journal: Journal of Economic Policy Reform Pages: 369-383 Issue: 4 Volume: 22 Year: 2019 Month: 10 X-DOI: 10.1080/17487870.2018.1457960 File-URL: http://hdl.handle.net/10.1080/17487870.2018.1457960 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jecprf:v:22:y:2019:i:4:p:369-383 Template-Type: ReDIF-Article 1.0 Author-Name: Ritika Jain Author-X-Name-First: Ritika Author-X-Name-Last: Jain Author-Name: Shubhro Sarkar Author-X-Name-First: Shubhro Author-X-Name-Last: Sarkar Title: An empirical analysis of disinvestment policy in India: does ideology matter? Abstract: Using panel data estimation for limited dependent variables and sample selection models, we identify political, industry specific, firm specific and macroeconomic variables which influenced the decision to divest central public enterprises in India between 1991–2010. We find that higher partial privatization is driven by a more right-winged coalition, lower ideological spread in the coalition and lower ideological difference between the center and the state in which the public enterprise is located. We also find that after the government selects larger, more experienced and more profitable firms, it divests the relatively less experienced and less profitable firms to a larger extent. Journal: Journal of Economic Policy Reform Pages: 384-398 Issue: 4 Volume: 22 Year: 2019 Month: 10 X-DOI: 10.1080/17487870.2018.1457961 File-URL: http://hdl.handle.net/10.1080/17487870.2018.1457961 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jecprf:v:22:y:2019:i:4:p:384-398 Template-Type: ReDIF-Article 1.0 Author-Name: Lena Calahorrano Author-X-Name-First: Lena Author-X-Name-Last: Calahorrano Author-Name: Luca Rebeggiani Author-X-Name-First: Luca Author-X-Name-Last: Rebeggiani Author-Name: Sven Stöwhase Author-X-Name-First: Sven Author-X-Name-Last: Stöwhase Author-Name: Martin Teuber Author-X-Name-First: Martin Author-X-Name-Last: Teuber Title: Demographic change and income tax revenues – results from a large microsimulation model for Germany Abstract: Similarly to many other European countries, Germany has experienced a considerable demographic shift since the 1970s: higher life expectancy and diminishing birth rates, only partly balanced by immigration, have led to an altered population structure with an increasing share of elderly people. In the next decades, population aging in Germany will accelerate and also induce a decline of the total population. These demographic changes can be expected to have a profound impact on the governmental budget. While shifts in public expenditures have been forecasted regularly since 2005, the revenue side has received less attention to date. We study the long-term (2015–2060) shifts in income tax revenues induced by demographic change. Our aim is to quantify possible fiscal effects of demographic change using microsimulation and to identify elements of the income tax code particularly affected. We find the expected demographic changes to have a clear negative impact on income tax revenues. Population aging increases the impact of various deductibility rules on total income tax revenues, in particular the impact of the deductibility of old-age and health insurance provisions. The impact of the deductibility of exceptional expenses such as expenses for caregiving also increases, but remains small overall. Due to expected increases in real incomes, however, demographic change does not imply an absolute drop in income tax revenues in the next decades. Journal: Journal of Economic Policy Reform Pages: 399-419 Issue: 4 Volume: 22 Year: 2019 Month: 10 X-DOI: 10.1080/17487870.2018.1469984 File-URL: http://hdl.handle.net/10.1080/17487870.2018.1469984 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jecprf:v:22:y:2019:i:4:p:399-419 Template-Type: ReDIF-Article 1.0 Author-Name: David A. McDonald Author-X-Name-First: David A. Author-X-Name-Last: McDonald Title: Innovation and new public water Abstract: Technological innovation has made significant improvements to water services but water delivery remains largely unchanged since Victorian times. This is because water is an essential, non-substitutable resource with little potential for economies of scale. By contrast, there has been dynamic innovation in the governance of water services, with privatization now giving way to a significant shift back to public ownership and management, with new and creative forms of societal engagement. This article reviews these governance changes through the lens of a “hydrosocial cycle”, arguing that innovations in “new public water” can only be achieved by recognizing how water-society relations take place. Journal: Journal of Economic Policy Reform Pages: 67-82 Issue: 1 Volume: 23 Year: 2020 Month: 1 X-DOI: 10.1080/17487870.2018.1541411 File-URL: http://hdl.handle.net/10.1080/17487870.2018.1541411 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jecprf:v:23:y:2020:i:1:p:67-82 Template-Type: ReDIF-Article 1.0 Author-Name: Massimo Florio Author-X-Name-First: Massimo Author-X-Name-Last: Florio Author-Name: Francesco Giffoni Author-X-Name-First: Francesco Author-X-Name-Last: Giffoni Author-Name: Gelsomina Catalano Author-X-Name-First: Gelsomina Author-X-Name-Last: Catalano Title: Should governments fund basic science? Evidence from a willingness-to-pay experiment in five universities Abstract: Tax-payers are usually the ultimate funders of large-scale research infrastructures (RIs), but the expected discoveries of such projects often do not have any known use-value. By interviewing 1,022 undergraduates, we study the drivers of preferences for paying for basic research, which are still little known. We focus on the LHC at CERN, where the Higgs boson was discovered. Income, awareness, and positive attitudes towards science drive a positive willingness-to-pay for science. Students in social sciences and the humanities are willing to contribute to scientific curricula at least as much as their peers. Findings offer support to government funding of basic research as a public good. Journal: Journal of Economic Policy Reform Pages: 16-33 Issue: 1 Volume: 23 Year: 2020 Month: 1 X-DOI: 10.1080/17487870.2018.1547638 File-URL: http://hdl.handle.net/10.1080/17487870.2018.1547638 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jecprf:v:23:y:2020:i:1:p:16-33 Template-Type: ReDIF-Article 1.0 Author-Name: Alessandro Sterlacchini Author-X-Name-First: Alessandro Author-X-Name-Last: Sterlacchini Title: Trends and determinants of energy innovations: patents, environmental policies and oil prices Abstract: This paper examines the relationship between energy innovations, environmental policies and oil prices. With a panel of 19 OECD countries over the period 1990–2013, we test how the stringency of environmental policies has affected the intensity of energy patents, while controlling for the effect of oil prices and other country-level variables. We found that the overall level of policy stringency has exerted a more significant impact than individual country measures. Moreover, the recent reduction of energy patenting is discussed, especially in the light of the staggering drop of oil prices. Journal: Journal of Economic Policy Reform Pages: 49-66 Issue: 1 Volume: 23 Year: 2020 Month: 1 X-DOI: 10.1080/17487870.2019.1565410 File-URL: http://hdl.handle.net/10.1080/17487870.2019.1565410 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jecprf:v:23:y:2020:i:1:p:49-66 Template-Type: ReDIF-Article 1.0 Author-Name: Alessandra Tassa Author-X-Name-First: Alessandra Author-X-Name-Last: Tassa Title: The socio-economic value of satellite earth observations: huge, yet to be measured Abstract: Earth-observing satellites provide regular and accurate data that can support evidence-based decisions and public policies in a wide range of domains, potentially bringing huge socio-economic benefits. However, obstacles to effective data exploitation and poor awareness about their impacts risk hindering this potentiality and threaten the investments. Leveraging on the case of the Copernicus Programme, we review the challenges related to the full exploitation of free environmental space data and to the measurement of the related impacts. We then discuss the need for empirical approaches based on value-chain analysis with the objective to stimulate further societal and economic research. Journal: Journal of Economic Policy Reform Pages: 34-48 Issue: 1 Volume: 23 Year: 2020 Month: 1 X-DOI: 10.1080/17487870.2019.1601565 File-URL: http://hdl.handle.net/10.1080/17487870.2019.1601565 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jecprf:v:23:y:2020:i:1:p:34-48 Template-Type: ReDIF-Article 1.0 Author-Name: Francesc Trillas Author-X-Name-First: Francesc Author-X-Name-Last: Trillas Title: Innovative behavioral regulatory agencies as second generation commitment devices Abstract: This article analyzes how the commitment problem in economic regulation, and a solution based on strategic delegation, are affected by the non-standard rationality of agents that participate in the regulatory interaction. As a result, on the one hand, independent regulators are seen as part of a potentially more robust innovative regulatory system, and, on the other hand, their contribution to this system can be based on a wider range of instruments. Second generation commitment mechanisms that take this into account may be a key ingredient of reforms in the regulation of those industries that require a long run perspective. Journal: Journal of Economic Policy Reform Pages: 83-99 Issue: 1 Volume: 23 Year: 2020 Month: 1 X-DOI: 10.1080/17487870.2019.1609358 File-URL: http://hdl.handle.net/10.1080/17487870.2019.1609358 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jecprf:v:23:y:2020:i:1:p:83-99 Template-Type: ReDIF-Article 1.0 Author-Name: Stefano Clò Author-X-Name-First: Stefano Author-X-Name-Last: Clò Author-Name: Massimo Florio Author-X-Name-First: Massimo Author-X-Name-Last: Florio Title: Science, innovation, and public services: editorial introduction Abstract: The quality of public services is critically influenced by innovation and, ultimately, by advances in basic research, which however embeds the feature of a global public good. Two broad issues emerge. The first concerns the evaluation of the socio-economic impact of science. What are the benefits and spillovers that R&D investments, research infrastructures and big science can bring to society? The second concerns which type of institutions and policies are most suitable for supporting R&D activities. These topics discussed in this article represent the core of the special issue “Innovation and Public Services: from the lab to enterprises and citizens” Journal: Journal of Economic Policy Reform Pages: 1-15 Issue: 1 Volume: 23 Year: 2020 Month: 1 X-DOI: 10.1080/17487870.2019.1649149 File-URL: http://hdl.handle.net/10.1080/17487870.2019.1649149 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jecprf:v:23:y:2020:i:1:p:1-15